Solana price has risen significantly over the past few weeks, climbing to its highest level since April 2022. The “Ethereum Killer” almost broke through the key $100 level on Friday before retreating slightly.The asset’s recent surge has seen Solana’s total market capitalization jump to $39.6 billion, ranking it at No. 5th Below and above BNB and XRP respectively. Solana has gained more than 22% in the past week and is up more than 80% so far this month. At the time of writing, SOL price is down 0.90% to $93.10.
Catalysts behind SOL rally
Solana price has been on a strong bull run over the past few days, surging to its highest level in 20 months as the network benefited from heavy activity and interest in the memecoin. The SOL token, the native digital asset of high-performance blockchain platform Solana, has shown great strength over the past few weeks, outperforming all altcoins on the market.
The recent surge in Solana’s price has been linked to an increase in on-chain activity on the Solana blockchain. Notably, SOL’s on-chain activity has been boosted by ongoing hype about the blockchain’s fast transactions, low fees, and massive meme coin issuance. Indicators show that Solana has been the most attractive among on-chain traders, with transaction volume and network fees exceeding Ethereum, the largest altcoin by market capitalization.
Citing data provided by DeFi aggregator DeFiLlama shows that the total value locked (TVL) of the Solana application has grown significantly over the past week. The platform’s token TVL rose to $1.3 billion, its highest level since July 2022, up from the $400 million recorded in November.
These factors, combined with global cryptocurrency market sentiment, have boosted Solana price, extending year-to-date gains to over 832%, with much of the growth recorded in the past two months alone.
Solana Price Outlook
The daily chart shows that Solana price has been on a strong upward trajectory over the past few weeks, breaking out of a bullish uptrend channel shown in yellow. The altcoin hit an intraday high of $99.49 on Friday before retreating. Solana remains above the 50-day and 200-day exponential moving averages, as well as the 100-day and 200-day simple moving averages. Its relative strength index has risen into overbought territory, highlighting increasing buying pressure.
Solana price needs to break above the key $100 level for further upside. A break above this level could pave the way for a jump to the next resistance at $120. However, we cannot rule out the possibility of a break below the immediate support at $80.55, which would invalidate the bullish argument.
SOL Price Chart
