Solana prices have seen significant gains over the past few weeks, rising to their highest level since April 2022. The ‘Ethereum killer’ fell slightly after almost breaking the crucial $100 level on Friday. The recent surge in assets puts Solana in fifth place with an overall market capitalization of $39.6 billion.Day After and beyond BNB and XRP respectively. Solana is up more than 22% last week and more than 80% so far this month. At the time of writing, SOL was trading 0.90% lower at $93.10.
The catalyst for the SOL rally
Solana price has shown strong strength over the past few days, soaring to its highest level in 20 months as the network benefits from strong interest and activity in the memecoin. The SOL token, the native digital asset of high-performance blockchain platform Solana, has shown significant strength over the past few weeks, outperforming all altcoins on the market.
The recent Solana price surge is related to increased on-chain activity on the Solana blockchain. In particular, the ongoing hype about the blockchain’s fast transactions, low fees, and meme coin issuance lotteries have boosted SOL’s on-chain activity. According to metrics, Solana enjoys the strongest popularity among on-chain traders, with trading volume and network fees surpassing Ethereum, the largest altcoin by market capitalization.
According to quoted figures provided by DeFi aggregator DeFiLlama, the total value locked (TVL) of Solana applications has increased significantly in the past week. The platform’s TVL increased to $1.3 billion worth of tokens, its highest level since July 2022 and up from $400 million recorded in November.
These factors combined with global cryptocurrency market sentiment have driven Solana price higher, increasing its year-to-date gain to over 832%. Most of the growth was recorded in the last two months.
Solana price outlook
Looking at the daily chart, we can see that Solana price has been on a strong upward trajectory over the past few weeks, breaking above the bullish upward channel marked 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 and the 100-day and 200-day simple moving averages. The Relative Strength Index has risen into overbought territory, highlighting increasing buying pressure.
Solana price would need to cross the $100 threshold for further upside. A break above this level could open the way for a jump to the next resistance at $120. However, we cannot rule out a decline below the immediate support level of $80.55, which would nullify the bullish argument.
SOL price chart