TLDR
- Solana (SOL) has surged 70% from June lows of $125 to current levels around $220-222
- Total Value Locked (TVL) on Solana blockchain reached record high of $12.27 billion
- Memecoin trading volume on Solana jumped 73% in 24 hours to $817.3 million
- Technical analysis shows V-shaped recovery pattern targeting $300 price level
- Current consolidation above $212 with key resistance at $220 and support at $216
Solana has demonstrated strong price performance over recent months. The cryptocurrency climbed 70% between June 22 and August 29, rising from lows of $125.
The token currently trades around $220-222 after finding support near the $202 zone. SOL broke above the $215 resistance level and pushed past $218 before reaching a high of $220.
The price now consolidates above $212 and the 100-hourly simple moving average. A bullish trend line has formed with support at $216 on the hourly chart.
Technical indicators show positive momentum building. The MACD for SOL/USD is gaining pace in the bullish zone. The RSI remains above the 50 level.
On the upside, immediate resistance sits near $220. The next major resistance levels are at $228 and $232. A successful break above $232 could set the stage for further gains toward $244 and potentially $250.
Network Growth Drives Price Action
Solana’s network fundamentals have strengthened considerably. The total value locked on the Solana blockchain reached an all-time high of $12.27 billion on Tuesday.
This represents a 57% increase from multimonth lows of $7.8 billion reached on June 23. Over the last 30 days alone, TVL has grown by almost 31%.
Raydium led the TVL growth with a 32% monthly increase. Other major decentralized applications saw strong gains. Jupiter DEX rose 24%, Jito liquid staking gained 18%, and Sanctum protocol increased 20%.
The $12.2 billion TVL surpasses the combined Ethereum layer-2 ecosystem including Base, Arbitrum and Optimism. Higher TVL typically boosts liquidity, popularity, and usability, which can positively impact prices.
Memecoin Activity Surges
Solana-based memecoins have posted strong weekly gains. Most tokens are up 15% to 30% from recent lows with double-digit weekly performance.
The collective memecoin market cap on Solana increased to $12.4 billion on Tuesday. This represents a 70% climb from $7.3 billion on June 22 in less than three months.
Memecoin trading volume on Solana jumped over 73% in the last 24 hours to $817.3 million. This increased activity indicates high network usage and rising demand.
Technical analysis reveals a V-shaped recovery pattern forming on the weekly chart since January. This bullish pattern occurs when an asset experiences sharp price increases after steep declines.
SOL currently trades below a supply-demand zone between $200 and $240. A breakout from this zone would increase chances of reaching the pattern’s neckline at $252.
The next target after completing the V-shaped pattern would be the all-time high above $295. This represents a 36% increase from current price levels.
The relative strength index has improved to 62 from 42 in mid-June. This suggests bullish momentum is building across multiple timeframes.
Market analysts express confidence in SOL’s upside potential. Popular analyst Jussy believes breaking $220 resistance could lead to a rally toward $270.
Fellow analyst Kepin sees “still more upside to the first target of $250” with next targets at $290-$300. The ultimate bull target is projected at $350.
If SOL fails to break above $220 resistance, initial support sits near $216 and the trend line. Major support levels are at $210 and $202.
