Solana (SOL) has recently showcased a strong bullish trend, as its price went up by about 18% in the last week to trade at around $171. Its price increase can be attributed to a mix of technical indicators as well as more investor confidence, which indicates that there is likely to be a huge rally within the next couple of months.
Technical Indicators Indicate to Continue Uptrend
One of the crucial technical advancements is Solana breaking above its 50-week Exponential Moving Average (EMA), a point of historical significance, which has tended to mark a strong bullish signal. In October 2023, a previous breakout above the 50-week EMA came before a price rise of SOL by 515% to March 2024. Now, SOL has also taken back both the 100-week and the 200-week EMAs, supporting the bull case. Relative Strength Index (RSI) has also broken above 50, which supports improving market sentiment.
On the daily chart, SOL broke above its 200-day EMA, with the closest resistance at $180. A successful hold and break above the level could open the way to new highs, possibly reaching the $250–$350 range by September 2025.
Increased Network Activity and Investor Confidence
Aside from technical considerations, Solana’s network has seen tremendous growth in decentralized finance (DeFi) activity. In the last 30 days, more than $165 million in liquidity has been bridged to Solana from other chains, such as Ethereum, Arbitrum, and Base. This flow indicates increasing confidence in Solana’s scalability and performance.
Additionally, Solana has recorded a 24-hour decentralized exchange (DEX) trading volume of $3.32 billion, which represents almost 29% of the total DEX market. This dominance indicates the growing adoption and usage of the network in the DeFi space.
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