Solana (SOL) price is poised for a significant upward movement in the coming days, as indicated by various technical and on-chain indicators.
On February 19, Solana’s total value locked (TVL) reached $1.9 billion, marking a 20-month high. The last time Solana’s TVL reached $2 billion was in June 2022. Over the past three months, Solana’s TVL has increased by 244%, starting from $580 million in November 2023.
This surge in TVL has been accompanied by SOL’s price, which has risen by over 100% during the same period. In the shorter term, Solana’s TVL has increased by more than 40% in the past 30 days, outperforming other top layer 1 protocols such as Ethereum and BNB Chain, which have seen increases of 30% and 19% respectively.
The rising TVL reflects the interest of traders in Solana’s DeFi ecosystem and indicates that Solana continues to attract new users due to its lower transaction costs, especially those seeking new airdrops. Solana’s fees have remained consistently low, ranging from $0.0001 to $0.0003, significantly lower than Ethereum’s transaction fees.
Solana boasts a strong developer community with over 2,500 active developers, demonstrating its appeal as a blockchain ecosystem. This community has led to the creation of numerous DApps on the layer 1 blockchain, resulting in a series of airdrops within the Solana ecosystem.
One notable airdrop was from Jupiter, the leading decentralized exchange (DEX) aggregator, which took place in January. This was part of the revitalization of the Solana ecosystem in the second half of 2023, with major projects like Jito and Pyth launching their tokens in November and December respectively. Another airdrop came from BONK, a Solana-based memecoin, which distributed 50% of its coin’s supply to Solana artists and collectors as a way to support the creative community.
There are still more airdrops expected in the coming months, although it remains to be seen if they will materialize.
In terms of price analysis, SOL’s price is currently trading above the neckline of an inverse head-and-shoulders (IHS) pattern, which is a bullish reversal pattern. A breakout and close above the neckline would indicate a reversal of the downtrend. SOL’s chart displays a similar bullish setup, with the price already rising above the neckline at $107 and turning it into support. If the price remains above the neckline, it increases the likelihood of a break above $126. A decisive daily close above $126 could lead to a 27% increase from the current price, with a technical target of $135.
The relative strength index is also pointing upward, validating the dominance of buyers in the market.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.