Is Solana's TVL Surge Signaling a Major Price Rally?

Is Solana's TVL Surge Signaling a Major Price Rally?

Solana has been one of the standout altcoins in 2024, maintaining a bullish trend throughout the year. Recently, SOL climbed above the $150 and $155 levels, gaining momentum after breaking the $162 resistance. However, the bears became active near the $172 zone, resulting in a slight pullback. This fluctuation has led many to consider their Solana price prediction as they analyze the market's potential for future growth.

Here’s a quick summary of recent price movements and key data:

  • SOL reached a high of $171 before correcting downwards, following similar moves seen in Bitcoin and Ethereum.

  • The price dropped below the $168 level as per Coinpedia Markets and declined past the 50% Fibonacci retracement level, from a swing low of $161.23 to a high of $171.00.

  • A break below a bullish trend line at $166 occurred, but SOL is still trading above $162 and the 100-hour simple moving average.

Also Read: Stellar Price Prediction 2024 - 2030: Will The XLM Coin Reach $1?

Solana’s fundamentals remain strong:

  • Total Value Locked (TVL): Reached a two-year high of $6.433 billion.

  • Daily DEX Volume: Surged to $2.4 billion, surpassing Ethereum's $1.482 billion.

  • Perpetual Futures Data: Long positions dominate at 82.34%, while shorts represent just 4.66%.

  • Open Interest: Hit a three-month high of $3 billion.

  • Active Addresses: Solana boasts 7.61 million active addresses in 24 hours.

  • Stablecoin Market Cap: Stands at $3.585 billion.

SOL surged over 1,000% from September 2023 to a high of $209.9 in March 2024. Despite pullbacks in the broader market, SOL held firm, consolidating rather than losing its gains. Analysts predict that Solana could retest its yearly high and possibly break its all-time high of $260, which was set in November 2021.