Over the weekend, Solana experienced an unstoppable rally, with the SOL price inching closer to $25. Currently, the Solana price has surged by an additional 15% in the last 24 hours, reaching $24.30. This impressive price surge has propelled Solana to surpass Dogecoin and Cardano, making it the seventh-largest cryptocurrency by market capitalization.
Analyzing the technical chart indicators, SOL has exhibited a steady ascent, surpassing the $23.20 resistance and outperforming Bitcoin and Ethereum with a remarkable 15% increase. It is now approaching a critical test at the $24.50 resistance level, after reaching a high point of around $24.47 before entering a consolidation phase. The SOL price remains strong, comfortably above the 23.6% Fibonacci retracement level derived from the upward swing between the $18.75 low and $24.47 high.
Looking ahead, immediate resistance is expected near $24.50, followed by a more substantial barrier at $25.00. A decisive breakthrough above the $25 resistance level could propel the price towards the $27.20 resistance, with the subsequent key hurdle found near $28.80. Further gains may potentially drive the price to the $30 level.
However, if SOL fails to establish a foothold above $24.50 and $25.00, it may initiate a corrective move. Initial support on the downside is located near the $23.20 level and the associated trendline. The first major support is approximately at the $21.50 level, corresponding to the 50% Fibonacci retracement level calculated from the upward movement spanning from the $18.75 low to the $24.47 high.
In the event of a close below the $21.50 support, the price could experience a descent towards the $20.50 support level, with a potential risk of further declines toward the $20.00 support level in the near term.
In addition to the price rally, Solana has also demonstrated strong growth in the decentralized finance (DeFi) market. The total value locked (TVL) on the Solana blockchain has surged to a new 2023 high of $338.82 million. Within a span of 24 hours, SOL’s TVL recorded a rise of approximately 4.15%, increasing from $324.64 million to $338.82 million.
Throughout 2023, SOL’s TVL has experienced significant growth, with an impressive increase of around 38% since January 1, when it stood at $210.47 million.
