Solana (SOL) Gains 10% on the Weekly Chart – Will it Surpass $25?

Solana (SOL) has seen a remarkable correction in the past week, showing a steady rise. Currently, SOL has gained 10% and is actively traded at $21.80, indicating a slight increase in the price of the crypto.

While it is important to note that SOL is far from its all-time high of $260, the recent upward momentum has lifted its value above the $20 mark, a promising sign of extended bullish sentiment. it shows.

What’s behind the SOL increase?

Right now there are many factors which can affect the increase in the price of SOL. These include macroeconomic factors such as inflation and crypto regulation in various regions. Additionally, Solana has experienced some success in driving token adoption by certain ecosystems and launching a cross-chain bridge.

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However, the most likely factor is the increase in DEX volumes recorded this week. Blockchain analysis platform Defilama revealed in a report earlier in the week that Solana experienced an increase in DEX volume. According to the report, SOL’s DEX volume increased by more than 80% and ranks fifth in the crypto market. This development is likely to boost its price action in the past week.

Nonetheless, Total Value Locked (TVL) has not reacted to this uptrend and has remained stable since its decline last November following the FTX collapse. Currently, the TVL stands at around $275 million and there has been no significant increase in value in the recent past despite an increase in SOL.

Solana (SOL) Price Outlook and Prediction

SOL is currently in an uptrend and has continued its positive price action over the weekend. However, the intermittent red candles on its weekly chart indicate that the bears are active this week.

Looking at the technical indicators, its relative strength index is at 50, in a neutral zone between the oversold zone of 35 and the overbought zone of 75. The Moving Average Convergence/Divergence (MACD) is currently in the buy zone, which is a bullish signal. Moreover, the histogram bars are green and indicate that there is a bullish trend ahead and if the bullishness persists, there is a possibility of a sustained rise in SOL in the days to come.

SOL is trading at $21.83 after finding significant support at the $15.43 price level a few weeks back. This keeps the altcoin close to the $22.50 resistance level.

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A break above the $22.50 resistance will help the price to retest the psychological resistance at $25. If it happens, SOL is likely to move towards the $23.00 resistance level after breaking above $22. However, due to bearish external market conditions, a further decline in the price below $20 is possible in the near term.

(The contents of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from iStock, Chart from TradingView