In a positive turn for the crypto market, Bitcoin surged 4.34% during Friday’s US trading session, sparking a broader rally that lifted most major altcoins. Solana (SOL) joined the upward trend, gaining 5% and showing signs of a sustainable recovery as its Total Value Locked (TVL) continues to climb.

Solana Price Poised for 25% Rally as TVL Approaches $6 Billion

After dropping to $136.2 in early October due to geopolitical tensions in the Middle East, Solana’s price has stabilized and formed a bullish double-bottom pattern. The recent 7.8% increase over the past 48 hours has pushed SOL to $145, with its market cap reaching $68.28 billion.

The price jump has allowed SOL to reclaim key daily EMAs (50, 100, and 200), setting the stage for further gains. If buying pressure persists, Solana could potentially surge 25% to $180, testing the resistance of the pennant pattern’s triangle.

This pattern typically indicates a strong primary trend followed by a brief counter-trend move. The short pullback allows the bulls to regroup before initiating another significant upward move. A breakout above the overhead trend line could accelerate momentum, potentially driving Solana’s price to $209 and eventually $275.

SOL TVL Hits $5.7 Billion with 3.44M Active Users

Solana’s network activity has rebounded impressively, with active addresses reaching 3.44 million according to theBlock data. This surge in user engagement is a positive indicator of the network’s health and growing adoption.

Furthermore, Solana’s TVL has been on a steady upward trajectory since March 2024. DeFiLlama data shows SOL’s TVL has now reached $5.7 billion, reflecting increased investor confidence in Solana-based DeFi projects.

However, investors should remain cautious. If Solana’s price breaks below the pennant’s lower trendline, bearish momentum could take over, potentially pushing the price down to $100 or even $80.

Frequently Asked Questions (FAQs)

1. What’s driving Solana’s current price movement?
Solana’s price is up 5% today, and this momentum is expected to continue toward a 25% surge, driven by rising Total Value Locked (TVL) in its decentralized finance (DeFi) ecosystem

2. What technical pattern has Solana’s price formed recently?
Solana’s price formed a bullish double-bottom pattern after a stabilization period following an initial sell-off

3. What’s the potential downside risk for Solana’s price?
If Solana’s price drops below the pennant’s lower trendline, bearish momentum could accelerate, extending the correction

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.