As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market swings and trends. Today, I am particularly excited about the potential growth of Solana (SOL). The recent price action, coupled with the steady rise in Total Value Locked (TVL) and user activity, indicates a strong foundation for this altcoin’s future success.
In the U.S. trading on Friday, the crypto market experienced a resurgence, fueled by increased purchasing power, which caused Bitcoin‘s price to jump by 4.34%. Following a week of consolidation, the bullish trend boosted many significant altcoins like SOL, marking the start of a steady recovery. Today, Solana’s price has risen by 5%, hinting at potential for continued growth as the Total Value Locked (TVL) continues to climb.
Solana Price Gears Up for 25% Rally as TVL Edges Toward $6 Billion
After an initial drop in Solana’s price due to geopolitical turmoil in the Middle East, causing it to decrease by $136.2 in early October, the coin’s price then stabilized briefly before showing signs of recovery with a bullish reversal double-bottom formation.
Over the past two days, the value of SOL has surged by 7.8%, currently standing at $145. This surge has also increased its market capitalization to a staggering $68.28 billion. The latest price surge has managed to reclaim the important daily moving averages (50, 100, and 200), setting the stage for potential further gains. If buying pressure continues, the price of Solana could potentially rise by 25%, reaching $180 and testing the resistance level for the triangle pattern.
In theory, the pattern suggests a dominant trend represented by a prolonged vertical element, which is then challenged by a reversal movement initiated by two meeting points. A brief retracement is intended to rebuild depleted bullish energy, providing a robust foundation for the upcoming major shift.
Consequently, if there’s a possible breach above the current trend line, it could significantly boost the upward price movement for Solana, potentially propelling its price forecast towards $209, and further up to $275.
SOL TVL Surges to $5.7 Billion with User Activity at 3.44M
Based on information from theBlock, the number of active Solana addresses has quickly recovered to approximately 3.44 million, demonstrating a spike in user interaction and involvement within its system. This rise in active addresses suggests growing trust and participation in Solana’s community, which is a promising sign of network vitality.
Moreover, it’s worth noting that Solana’s Total Value Locked (TVL) has shown a consistent rise since March 2024. As per DeFiLlama statistics, the TVL of SOL has experienced a significant increase of approximately $5.7 Billion. This upward trend signifies growing investor trust and participation in decentralized finance (DeFi) initiatives within its network.
Contrarily, should the price of Solana fall beneath the lower trendline of the pennant formation, the downward pressure is likely to intensify, prolonging the corrective phase towards $100, and possibly even extending it further to $80.
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2024-10-12 11:35