Solana Price Aims for $220 After 15% TVL Surge In July

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As a seasoned crypto investor with a few years under my belt, I’ve seen my fair share of market volatility and price movements that defied expectations. The recent surge in Solana’s price, up 6% on Friday, has piqued my interest once again.

The cost of Solana has risen by 6% on Friday, fueled by optimistic outlooks aiming to maintain the surge and surpass the $200 barrier prior to August. This week’s trading has shown instability due to the initiation of Ethereum ETFs’ transactions in the US markets.

Following another attempt to test the support level at $165, SOL shifted its course and encountered resistance at $170. Subsequently, it advanced to trade at $178 during regular US trading sessions.

Several elements are predicted to influence Solana’s price trends, with the futures market open interest being one of them as it bounces back from a significant decline earlier this month.

Traders need to closely monitor inflation as a significant influence, given the recent trend suggesting a consistent decrease over the past few months.

Based on my extensive experience as a seasoned economist, I believe that recent developments have brought about increased pressure for the Federal Reserve to implement the first rate cut. However, from my perspective gained through years of observing monetary policy, the Fed seems reluctant and hawkish in their stance. They appear eager to wait for more confirmation of this trend before making a move towards achieving their 2% inflation target.

SOL DeFi TVL Soars As Crypto Prices Recover

The DecFi sector of Solana is once again advancing impressively after experiencing a significant decline from its peak of $4.97 billion in May to a low of $4.02 billion in July.

With a total value locked amounting to $5.34 billion, Solana experienced a growth of 15% in July. This expansion underscores the optimism surrounding the potential of its smart contract token.

Solana Price Aims for $220 After 15% TVL Surge In July

The greater the number of people securing Solana using smart contracts within its ecosystem, the higher the potential for significant price increases in the future. This trend serves as a reliable indicator for long-term investors.

In the past 24 hours, there’s been a noteworthy increase in Solana futures open interest. At present, it stands at $2.7 billion, marking a 9% rise on Coinglass. Open interest signifies the quantity of unfilled derivative contracts awaiting settlement.

Solana Price Aims for $220 After 15% TVL Surge In July

If the SOL Open Interest (OI) on the Settlement-Only (SOL-SO) futures contract continues to increase in tandem with the rising price, this could indicate fresh capital entering the market, which is generally considered a bullish sign.

Can Solana Price Tag $220 Before August?

The price of Solana bounced back from $165 support to reach $178, with the Moving Average Convergence Divergence (MACD) indicator providing a buy signal as justification. This technical development was followed by the appearance of a golden cross in the daily chart, fueling renewed optimism for a reversal in Solana’s trend.

Solana Price Aims for $220 After 15% TVL Surge In July

Based on the current placement of Solana’s price point above the downward trendline depicted on the graph, there are signs suggesting a potential bull market, with investors eagerly anticipating a surge above the $200 mark before the weekend.

Based on past analysis of Solana’s (SOL) price movement, surpassing the current resistance level at around $180 could trigger fear of missing out (FOMO) among traders, leading them to add more buy orders. This increase in buying pressure might propel the price upwards towards the next significant resistance level at approximately $220. Once this hurdle is overcome, Solana’s price could potentially reach its previous all-time high of around $260.

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2024-07-26 16:28