- Solana has retested key pennant support levels at the time of writing.
- The rising metrics and TVL indicate the growing power of the ecosystem.
Solana (SOL) is showing signs of a bullish breakout after a successful test of a key support level. The altcoin has been consolidating within a bullish pennant pattern for the past five months.
Over the last 24 hours, SOL has bounced off the lower line of the pennant pattern, indicating increased buying pressure at this support level.
This key support level could serve as a springboard for an uptrend towards the next resistance level at $153.
The $153 resistance level is important for SOL bulls. A clear break of this level could rekindle buying pressure and open the way for a retest of previous highs.
Source: TradingView
Turning bullish as selling pressure eases
In addition to the aforementioned price action, DeFiLlama’s net buying data shows a significant decrease in sellers over the past 24 hours.
So at the time of writing, the net flow decreased from 9.58 million to -0.32 million, suggesting that selling pressure has weakened.
Source: DeFiLlama
SOL DeFi Shows Its Muscles
In addition to the decreasing net flow, Solana’s TVL (Total Value Locked) has been trending upward, indicating growing confidence in the DeFi ecosystem among network users.
This growth means additional funds are being deposited into Solana-based protocols, which is a positive indicator of network adoption.
Source: DefiLlama
Additionally, development activity to improve the Solana network has expanded in recent weeks, according to Santiment data.
Historically, a surge in development activity has led to major price rallies, which is a positive sign for Solana bulls.
Source: Santiment
Read Solana (SOL) Price Prediction 2024-25
At the same time, Social Volume showed a gradual increase overall. This increased social interest often leads to increased trading activity and price volatility.
Source: Santiment
The confluence of technical indicators and on-chain indicators for SOL paints a bullish picture. If Solana breaks through the bullish resistance levels, further price gains could be witnessed.