NewsletterSolana Price Analysis: Momentum Builds Towards $200 as TVL Exceeds $5 Billion Mark
Highlights
- A recent breakout from the triangle pattern has flipped the $170 region into potential support.
- The 20D EMA crossing above the 50-and-100-day EMAs slope highlights the buyers are gradually strengthening their hold over this asset.
- The 24-hour trading volume on the Solana coin is $1.89 Billion, indicating a 13.7% loss.
Amid the weekend consolidation in the crypto market, the Solana price analysis shows a short dip of $0.77% to trade at $172. The pullback is set to retest the triangle pattern’s breached resistance and showcase its sustainability after 4-months of consolidation. As the SOL coin witnessed a renewed recovery in on-chain metric active address and TVL, the recent breakout should attract a directional rally from buyers.
Solana Price Analysis As SOL Escapes 4-Month Consolidation
The Solana price analysis showcases a 4-months of consolidation in the daily chart. The sideways action is marked by two converging trendlines connecting the series of lower highs and higher lows to form a triangle pattern.
In theory, this continuation pattern is known as recuperating the exhausted bullish momentum on an asset before the next recovery leap. Amid the July market recovery, the SOL price recently rebounded from the pattern’s lower trendline closely coinciding with the multi-month support of $121.
The bullish turnaround boasted the Solana coin 41.3% to trade at $172.2, while the market cap surged to $79.9 Billion. On Friday, the rising price breached the triangle resistance signaling the end of consolidation.
Moreover, the Total Value Locked (TVL) in Solana has seen a robust recovery, climbing from $4.02 billion to $5.13 billion—an increase of 27.6%. A rising TVL indicates that more assets are being deposited into the network, suggesting growing trust and interest among investors.
During the same period, the number of active addresses on the Solana network surged from 1.44 million to 1.82 million, marking a 26% increase. This rise in active addresses indicates heightened user engagement and suggests that more participants are interacting with the Solana blockchain.
If the triangle breakout sustains, the Solana price could surpass the $210 peak and chase the initial target of $325.
However, if a triangle setup is considered a part of a longer pennant pattern formation the SOL price prediction could aim for an extended rally to $1420.
Technical Indicators:
EMAs: A recovery above the daily Exponential Moving Average (20, 50, 100, and 200) signifies a resurgence of positive market sentiment towards the SOL coin.
ADX: An uptick in the daily Average Directional Index slope at 22% indicates the current recovery has sufficient momentum to lead a higher rally.
Frequently Asked Questions (FAQs)
1. What does Total Value Locked (TVL) mean?
2. How does the increase in active addresses affect market sentiment for Solana?
3. Is SOL price ready to hit All Time High?
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