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April 20, 2024
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Solana’s TVL & Volume Explodes: Here’s Why SOL Price Rally May Hit $500, Squashing the Bearish Pressure

The post Solana’s TVL & Volume Explodes: Here’s Why SOL Price Rally May Hit $500, Squashing the Bearish Pressure appeared first on Coinpedia Fintech News

Since memecoins gained mainstream attention, Solana has become home to newly launched memecoins, some of which have a market capitalization of more than $1 billion. Among them were dogwifhat (WIF) & BOOK OF MEME (BOME) which set the crypto markets on fire. Popular memecoins like Dogecoin (DOGE) & Shiba Inu (SHIB) awakened after a prolonged consolidation. 

With the rise in memecoin interest, the Solana chain was preferable as it received nearly 50% traffic, as per the data from Coingecko. This caused a massive rise in the TVL and also the volume over the platform, which soared beyond $3 billion within a few days. 

The rise in both fractals had a massive impact on the Solana price, which marked new yearly highs above $210. Despite the bearish market conditions a few days ago, the bulls quickly jumped in after the price reached its lows at $162. The recent price action has enabled the price to reach close to its parabolic recovery that could have been accomplished after the token reached the ATH. 

The current trade setup indicates the token still has huge bullish support as the buying pressure continues to mount over Solana. Until the SOL price remains stuck within the two major weekly levels, the possibility of forming a new ATH remains pretty high, as the weekly support is offering a strong base. 

Regardless of the current bearish pressure, the SOL price suggests it is self-assured of a bullish breakout. The RSI remains within the upper threshold, suggesting the rally’s strength could remain elevated. Besides, the Average True Range (ATR), which is a volatility indicator, maintains a healthy upswing. This suggests the price may remain highly volatile, which elevates the possibility of huge price variations, attracting fresh liquidity. 

Hence, the Solana (SOL) price appears to be pre-programmed to reach $300 anytime from now if the price regains its highs at $210 before the end of the month.

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