IMPORTANT POINTS:
- Solana (SOL) is close to breaking the resistance of 30: It experienced an increase of 8.01% in one week and is trading above 24.
- Significant growth in Total Value Blocked (TVL): Solana shows a 14% increase in blocked funds, positioning itself as the ninth chain in terms of funds.
- Indicators Suggest Upside Potential: The daily chart and SMA indicator signal a possible uptrend, with the RSI trading a balance between overbought and sold conditions.
The Solana (SOL) cryptocurrency has experienced considerable price swings over the past week, just like many others on the market. Currently, SOL is trading above 24, experiencing an increase of 8.01% in the last 7 days and registering a volume of operations that exceeds 376 million in the last 24 hours.
This behavior has aroused conjecture among investors, who debate about the imminent breaking of the resistance of 30.
Factors That Could Drive the Price of SOL
Solana has seen considerable growth in its total value locked (TVL). According to Messari data, Solana outperformed other chains, with a 14% increase in funds blocked last month.
On the other hand, information from DeFi Llama reveals that Solana is positioned as the ninth chain in terms of funds blocked. Currently, it has close to 320.07 million blocked, a number that is notably higher than the 205.11 million at the beginning of the year.
This increase in Solana’s TVL could entice more investors to acquire SOL tokens. It is important to note that with the growing interest, the price of Solana tokens could increase due to increased demand. However, if negative news related to Solana’s safety or performance were to emerge, despite the increased TVL, it could trigger sell-offs, negatively impacting the price.
Can SOL Reach 30?
The daily chart shows that SOL has performed positively in the last 24-hour market cycle. The asset is trading above the Simple Moving Average (SMA) indicator and is showing an uptrend, which could mean strong price momentum.
It also suggests that buyers remain active, pushing the price up. This behavior is usually indicative of sustained demand that could lead to further price appreciation. Despite this, while the SMA can act as support, it can also become resistant if the price breaks out above it.
In this context, the Relative Strength Index (RSI) at 55 hints that the cryptocurrency is in a balance between overbought and sold conditions. Also, the Moving Average Convergence Divergence (MACD) indicator shows an attempt to cross the signal line, which could indicate a change in momentum.
Based on the analysis, SOL is likely to reach 30 in the coming weeks if the bulls maintain the current market sentiment. Traders will need to watch for this bullish behavior, though it is essential to consider other indicators and the market context for a more accurate assessment of the coin’s direction.
