Solana’s Soaring Trajectory: Anticipating a $200 Price Surge Amidst a $1.5 Billion DeFi TVL Surge in 2024

Solana's Soaring Trajectory: Anticipating a $200 Price Surge Amidst a $1.5 Billion DeFi TVL Surge in 2024

Solana Price Prediction: SOL Reclaims $115 S/R Amidst $1.5 Billion DeFi TVL Rally

Solana (SOL) has surged to reclaim the $115 support/resistance level, riding the wave of the overall cryptocurrency market, particularly driven by the ascent of Bitcoin. The competitive smart contracts token, outperforming many altcoins, is currently priced at $113, reflecting a double-digit percentage increase.

With a remarkable 94% surge in 24-hour trading volume to $3.3 billion, Solana’s market cap has risen by 11%, reaching $50 billion, securing its position as the fourth-largest cryptocurrency, following Tether (USDT).

Solana Price Analysis: Closing Above $115

Following a dip from the 2023 high at $125, Solana experienced a short-term falling wedge pattern, bottoming out slightly below $100. However, bulls regained control at $98, initiating a trend reversal. The recovery aligns with Bitcoin’s strengthening technical structure, and Solana has reclaimed the support/resistance areas highlighted by the 50 Exponential Moving Average (EMA) (in red) and the 20 EMA (in blue).

Given the improved technical outlook, holders are advised against further selling, and traders are entering new long positions. SOL has surpassed $110 and is now working to narrow the gap between $115 and $120. A buy signal from the Moving Average Convergence Divergence (MACD) indicator supports the uptrend after the breakout from the falling wedge.

If SOL can hold support at $115, the likelihood of overcoming selling pressure at $120 and continuing the recovery towards $200 increases. Traders should remain vigilant to avoid potential bull traps, especially if SOL fails to close the day above $115.

With the Relative Strength Index (RSI) retreating into the neutral area after nearing the overbought region, the path of least resistance may shift downward. In the event of an RSI reversal, falling back to the midline (50) and potentially towards the oversold region (below 30), SOL might retest short-term support at $110, with the possibility of losses extending to the previous support around $100.

Solana DeFi TVL Surges to $1.5 Billion

Assets locked in Solana smart contracts, part of the decentralized finance (DeFi) total value locked (TVL), have consistently risen, reaching highs above $1.5 billion for the first time since August 2022. According to blockchain data from Defi Llama, the upsurge began in October and is expected to continue as long as the overall crypto market remains bullish.

Holders seem to be optimistic about SOL’s positive outlook, choosing to keep their SOL tokens locked in staking contracts to earn rewards.