Solana Price Prediction: TVL Expansion Driving $SOL Rally
In the cryptocurrency market, Solana has recently garnered attention for a variety of reasons, and its Total Value Locked (TVL) has been steadily increasing. This has led to a resurgence in the price of its native token, SOL, which is now trading above $100. As investor interest grows, the question arises: can SOL continue to rally and surpass the $120 mark?
The recent recovery trend of SOL started in late January when the price rebounded from $79. Since then, the altcoin has surged 37% and is currently trading at $108.5. Alongside this price rally, the network’s TVL has surpassed the $1.85 billion milestone. This growth in TVL signifies a growing trust and interest in the Solana ecosystem, potentially attracting more adoption and investment.
When analyzing the daily time frame chart, an inverted head and shoulder pattern can be observed, which is a bullish reversal pattern typically seen at market bottoms. On February 9th, SOL broke out above the pattern’s neckline resistance at $105, and the price hike also reclaimed the fast-moving EMAs 20 and 50, indicating active buyer influence.
While SOL is experiencing a slight intraday loss of 0.5%, this can be seen as a post-breakout rally to confirm the sustainability of the price for future growth. If the coin manages to sustain support at this level, there is a possibility of a 24.5% increase, reaching $134.
Considering technical indicators, an upswing in the upper boundary of the Bollinger Bands suggests aggressive recovery momentum. Additionally, the Average Directional Index (ADX) slope is at 13% and rising, indicating sufficient buyer momentum for a prolonged recovery.
In conclusion, the expansion of TVL and the positive price rally suggest a potential boost for SOL beyond the $120 mark. However, investors should closely monitor the sustainability of the price and keep an eye on technical indicators for further insights.
(Source: Tradingview, DefiLlama)