Solana Price Analysis: Can DeFi Growth Boost SOL Above $200 Again?

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As a seasoned crypto investor with a knack for spotting trends and a penchant for high-potential altcoins, I find the current Solana price analysis intriguing. Having witnessed the meteoric rise of Bitcoin and Ethereum ETFs, I can’t help but feel a sense of anticipation about the potential approval of a Solana ETF.

After the surge in SOL‘s market position due to the increase in its smart contracts token slowed down, bulls are finding it tough to maintain their hold. However, an analysis of Solana’s price and its recovery from a significant drop to $110 on Monday suggests a potential continuation of the upward trend towards $200. This optimistic outlook is bolstered by a robust growth in the Decentralized Finance (DeFi) sector.

Solana Price Analysis: What’s Ahead As DeFi Txs Hit 36.2M

Based on the latest analysis, it appears that the Solana price is indicating a potential prolongation of its upward trajectory, despite experiencing a pushback around $160. Anticipating traders believe that the short-term floor at $150 will provide adequate support and alleviate selling pressure, potentially causing the trend to turn back up again.

As reported by Defi Llama, Solana’s DeFi actions are on the upswing. The number of transactions has surpassed 36.2 million, with approximately 966,000 active addresses involved. Moreover, the Total Value Locked (TVL), indicating the combined value locked in smart contracts within the system, has rebounded to $4.95 billion as of August 5, compared to its previous level of $3.8 billion.

It’s noteworthy that an increase in Total Value Locked (TVL) in TV typically reflects a rise in asset prices. A larger DeFi TVL signifies growing investor faith in the value of SOL, implying more capital is being poured into the ecosystem via staking. This influx of funds can stimulate demand for SOL, potentially pushing its price towards the ambitious $200 level.

Solana Price Analysis: Can DeFi Growth Boost SOL Above $200 Again?

Previously, analysts at CoinGape pointed out that the potential approval of a Solana-based ETF by the end of this year could significantly influence Solana’s price. Currently, there are two exchange-traded funds (ETFs) in operation – Bitcoin ETFs since early January and Ethereum ETFs since July.

On Thursday, Brazil’s Securities and Exchange Commission (SEC) generated headlines with its significant move towards endorsing a Solana ETF. The U.S SEC is anticipated to scrutinize multiple SOL ETF proposals, deciding either to approve or dismiss them. Potential approvals could boost the probability of Solana’s price analysis surpassing $200 and potentially reaching a fresh record high.

SOL Price Set To Resume Rally

The price of Solana strengthens the positive perspective, overcoming the obstacle at $160. Furthermore, this short-term support might motivate traders to take advantage of crucial Dollar Cost Average (DCA) tactics, aiming for a new surge towards $180 and subsequently to $200.

Cautious investors might prefer to hold off on purchases until they see a possible buy signal from the Moving Average Convergence Divergence (MACD) indicator. In simpler terms, they’ll want to see the blue MACD line cross above the red signal line in the daily chart for confirmation that the bullish outlook is valid.

Solana Price Analysis: Can DeFi Growth Boost SOL Above $200 Again?

As a crypto investor, it’s essential to keep in mind that Solana’s current position is just below a significant support zone formed by the intersection of the 20-day Exponential Moving Average (EMA) and the 50-day EMA, which stands at approximately $156. If this area fails to act as a reliable support in the upcoming trading sessions, the odds of SOL‘s price dropping to around $140 significantly increase. The 200-day EMA adds an extra layer of strength to this support level, and it must hold firm to ward off any potential slide that could take Solana down to $130.

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2024-08-09 22:32