Solana following Bitcoin? Network activity, chart pattern point to $300 SOL price
Key takeaways:
Solana's $9.4 billion TVL is a 54% increase since April 7.
Solana’s memecoin daily trading volume has more than doubled since early April.
A bullish V-shaped recovery pattern projects SOL price to rise toward $300.
Solana’s native token, surged 86% between April 7 and May 26, following a broader altcoin market rally that also saw .
Since then, SOL has struggled to break above $180, but onchain and technical data still suggest further gains are in store for the altcoin. Can SOL hit all-time highs above $300?
Solana’s TVL up 54% since April 7
The (TVL) on the Solana blockchain has increased by over 54% to $9.44 billion on May 26 from multimonth lows of $6.12 billion on April 7. It’s also up by almost 20% over the last 30 days.
Solana TVL. Source: DefiLlama
Data from DefiLlama that the subsequent increase in TVL was led by Raydium, with a whopping 52% increase in a month. Other major decentralized applications such as Jupiter DEX, Jito liquid staking and Kamino Lending gained 12%, 25% and 11%, respectively.
While Solana ranks as the fifth-largest cryptocurrency by market capitalization, the Solana network is ahead of the other top layer-1 blockchains in terms of TVL, second only to Ethereum.
Blockchain ranked by TVL, USD. Source: DefiLlama
However, Solana’s $9.5 billion TVL surpasses that of the Ethereum , which includes Base, Arbitrum and Optimism. It is also larger than BNB Chain’s, which integrates seamlessly with Binance and Trust Wallet.
Solana memecoin market cap gains 65%
The rise in Solana’s TVL mirrors an increase in memecoin market capitalization as prices recovered across the board.
Most Solana-based memecoins have posted double-digit daily losses in the weekly and monthly timeframes, as shown in the figure below. A majority of these tokens are 50% to 80% from local lows.
Solana-based tokens performance. Source:
As a result, Solana's collective memecoin market cap increased to $13.4 billion on May 26 from $8.1 billion on April 8, a 65% climb in less than two months.
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This rise in the prices of Solana-based memecoins and market cap was preceded by increasing DEX activity on the layer-1 blockchain.
Memecoin trading volume on Solana. Source:
The increase in memecoin activity on Solana indicates high network activity and rising usage, positively impacting demand and SOL price.
SOL’s “V” chart pattern targets all-time highs
SOL’s price action has been painting a V-shaped pattern on the weekly chart since January, as shown below.
A V-shaped recovery is a bullish pattern formed when an asset experiences a sharp price increase after a steep decline. It is completed when the price moves up to the resistance at the top of the V formation, also known as the neckline.
SOL appears to be on a similar trajectory and now trades below a supply-demand zone between $180 and $200. A breakout here would increase the chances of the price rising to the neckline at $252 to complete the V-shaped pattern.
Beyond that, the next target would be the all-time high above $295, representing a 66% increase from the current price.
SOL/USD daily chart. Source: Cointelegraph/
The has increased to 53 at the time of writing from 36 at the end of March, suggesting that bullish momentum is picking up.
As Cointelegraph , SOL price could rise by 45% with a decisive bullish breakout above $180 in the coming days.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
