Solana has regained attention as its price climbs back to the $180 mark, a level last seen in mid-February. This surge comes amid improving decentralized finance (DeFi) metrics and a robust technical setup, driving investor interest and confidence.

Solana Price Surge: Key Drivers

Over the past day, Solana’s price has increased by 6%, and over the past week, it has risen by 22%. Alongside this, open interest in Solana has grown by 11.08%. This indicates a higher number of traders entering the market with new contracts, pointing to growing investor confidence in the asset.

According to recent data, Solana’s total value locked (TVL) has jumped from $7.5 billion at the start of May to $9.6 billion. Key contributors to this growth include DeFi platforms like Marinade (up 56%), Jito (up 41%), and Raydium (up 78%). Decentralized exchange (DEX) volumes have also increased significantly, rising from $18 billion to $22 billion over the past week.

Chain Activity and Staking Trends

Solana’s network activity remains strong, with steady increases in revenues and transaction fees over the last four weeks. These metrics are now nearing three-month highs. Furthermore, approximately 65% of Solana’s supply is staked. This limited circulating supply, combined with growing demand from DeFi usage, could further support upward price momentum.

Challenges in Solana’s Metrics

While several indicators point to bullish sentiment, not all metrics are favorable. Solana’s stablecoin market capitalization has dropped by 8% over the past seven days, now standing at $11.7 billion. Additionally, the funding rate, currently at 8%, suggests traders are paying a premium to hold long positions. While this indicates optimism, it can also signal potential short-term corrections.

Technical Analysis: Strength and Caution

From a technical perspective, Solana is trading above all major moving averages, including the 10, 20, 50, 100, and 200-day EMAs and SMAs, all signaling a “buy.” This underscores the asset’s upward momentum. However, the relative strength index (RSI) has reached 71, indicating overbought conditions that may precede a correction.

The Bollinger Bands are widening, with Solana trading near the upper band. This typically signals increased volatility and may lead to either a breakout or consolidation. Immediate resistance is found near $185, with a breakout potentially paving the way for a move toward $200. On the downside, support levels are identified at $157 (20-day EMA) and $130, aligning with the lower Bollinger band and previous consolidation zones.

Future Outlook for Solana

Looking ahead, Solana’s bullish momentum could persist if the price breaks above the $185 resistance level with strong volume. However, a rejection at this level may trigger a pullback to support zones around $157 or $130. While Solana remains 39% below its all-time high of $295, factors such as increasing institutional interest, potential ETF approvals, and upcoming upgrades like Firedancer could drive further growth, making the $200 mark attainable under favorable market conditions.

For investors and traders, keeping an eye on Solana’s technical levels and broader market trends will be key to navigating its price movements effectively.

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