Solana Network Activity Reaches All-Time Highs – Can SOL Surpass $200?
In the recent week, Solana’s [SOL] value has surged by 7%, and in the past two weeks, it has seen a 16% increase, reaching $165 currently. The positive momentum in the broader cryptocurrency market has helped SOL recover, with network expansion playing a significant role in its recent upswing. According to Token Terminal data, the number of daily active addresses on the Solana network has been steadily increasing and is currently at its peak. This surge reflects optimistic sentiment towards Solana as more users engage in trading SOL and utilizing decentralized applications (dApps) on its blockchain. Furthermore, daily revenues on Solana recently hit $2M, marking a six-month high and highlighting the growing demand for the network.
Could Solana Surpass Tron in DeFi TVL?
DeFi is one sector where the Solana network is witnessing a notable uptick in usage. Data from DeFiLlama reveals that Solana’s DeFi Total Value Locked (TVL) has reached a 34-month high of $6.48 billion. Meanwhile, Tron’s (TRX) TVL has dropped to $6.94 billion. If Solana continues to expand its TVL, it might surpass Tron, positioning itself as the second-largest blockchain by this measure. Additionally, Solana’s DeFi revenues have surged to their highest since March, underscoring the network’s increasing utility.
The growth of a blockchain network typically signals a bullish outlook and could potentially drive a price rally. Moreover, various technical indicators suggest that despite a recent pullback, SOL’s upward trend is gaining momentum.
Positive Technical Indicators Point to Bullish Momentum
Presently, SOL is about 36% away from its all-time highs, but multiple bullish signals indicate a potential breakthrough above $200 and a push towards a new peak. Solana is currently trading within an ascending parallel channel on the one-day chart, signaling a prevalent bullish trend. Resistance is evident at the upper trendline, where profit-taking by sellers occurs as SOL approaches this level.
The Chaikin Money Flow (CMF) is not just positive but has also demonstrated a significant upward surge, indicating robust bullish momentum with substantial capital inflow to Solana. Furthermore, the Average Directional Index (ADX) is showing an upward trend, suggesting a strengthening upward trajectory.
Given the alignment of these bullish indicators, SOL could target the next resistance level at $171. A successful flip of this level would signify a breakout from the ascending parallel channel, paving the way for further gains.
Traders have taken notice of these positive signals, as Solana Funding Rates have remained in the positive territory for the past two weeks. This implies that long buyers are willing to pay a premium to hold their positions, bolstering the bullish scenario for SOL.