Solana’s (SOL) price has seen a significant rise, supported by both technical and on-chain indicators. As of today, SOL is trading at $169, up more than 6% in the last 24 hours and 41% from its September low of $120. This growth coincides with a modest recovery in the broader cryptocurrency market, as Bitcoin revisits its record highs.
Here’s a look at the factors driving Solana’s price upward.
Solana TVL Hits 30-Month High
Solana’s total value locked (TVL) has surged to $6.4 billion, its highest point since January 2022, according to DefiLlama. This marks a year-to-date increase of 348%, highlighting the growing interest in Solana’s decentralized finance (DeFi) ecosystem. In comparison, Ethereum and BNB Chain have seen smaller TVL growth, demonstrating Solana’s appeal, especially for users seeking lower transaction fees.
SOL/USD daily chart. Source: TradingView
Memecoin Activity Fuels Demand
The rise in memecoins on Solana has also played a key role in the price surge. Data from CoinGecko shows over 610 memecoins have been built on Solana, driving up on-chain activity. This has resulted in increased demand for SOL, further boosting its price. Solana’s developer community has grown in parallel, with over 2,500 active monthly developers, as noted by the Solana Foundation.
Solana total value locked. Source: DefiLlama
Technical Indicators Point to Breakout
From a technical perspective, Solana’s price is trading above the neckline of an inverse head-and-shoulders (IHS) pattern, which is a bullish indicator. The successful flip of the $163 level into support suggests that buyers are in control, increasing the likelihood of further gains. If SOL closes above $180, it could reach a target of $207, representing a 24% increase.
With its relative strength index (RSI) remaining elevated and simple moving averages supporting the current price, Solana appears well-positioned for continued growth.
