Among the various cryptocurrencies making waves in the market this year, Solana (SOL) stands out. Following a challenging period of decline from its all-time high of $264, holders of SOL are finally seeing positive results. Solana has made a significant recovery, returning to price levels seen in mid-December.
Despite this recovery, there is still room for growth. The recent absorption of $1 billion in stablecoin liquidity indicates a positive trend. Solana’s Total Value Locked (TVL) is now close to reaching $12 billion.
The groundwork for a potential breakout is being laid. A strong push above $220 could signal a sustained upward movement.
However, external market conditions could pose challenges to these plans. Nevertheless, given SOL’s strong performance in various key metrics, can Solana defy expectations and maintain its position?
Solana’s Technological Advancements Driving the Recovery of SOL
Statistically, SOL only requires a 20% increase to reach its all-time high. With its recent resurgence, achieving this milestone might seem achievable.
Solana is demonstrating vitality through its advanced technology and increasing transaction volumes. The notable 13% rise in network fees to $16,698.88 within the last 24 hours indicates heightened network activity.
Furthermore, Pumpfun, Solana’s initiative for token creation, is gaining popularity, with daily addresses approaching 250,000. This surge suggests that liquidity is flowing through the network for various purposes, further evidenced by the TVL figures.
Delving deeper, staking returns are also on the rise, climbing by 5% to reach 8.5%.
The higher staking rewards are driving greater demand for SOL, with investors staking their tokens to gain better returns. This increased demand is reflected in the rising TVL, indicating more locked liquidity.
In essence, Solana’s robust technology is fueling widespread adoption and attracting new liquidity to its network. But how does this impact its price outlook?
Solana started the year with a double-digit surge. Key indicators like the MACD crossover are turning positive, and the RSI has not entered overbought territory. If this momentum continues, a sustained uptrend appears probable.
Considerations for Achieving the $220 Price Milestone
For Solana to surpass $220, a combination of bullish internal and external factors must align harmoniously without contradictions.
Internally, Solana commenced 2025 with strong momentum at $190 and Open Interest (OI) of $4.78 billion. Presently, it has surged to $215, with OI reaching $5.85 billion – a remarkable 22.38% increase within a week.
Moreover, Solana’s recent double-digit rise brought the SOL/BTC pair into positive territory, indicating investor confidence in its potential and supported by a notable spike in trading volume.
However, this positive momentum was short-lived. The fluctuations in Bitcoin’s price nearing $100,000 are influencing external factors, causing the SOL/BTC pair to return to negative territory.
This raises concerns about whether Solana’s recent surge was a brief spike driven by users flocking to its network for speed and higher profits.
From the perspective of strategic investors, Solana still has room to grow in attracting investments and competing with other assets.
Breaking past the $220 mark is not guaranteed, but if Solana can navigate external pressures successfully, it may open doors to a breakthrough in the future.