- Solana retested major flag support at the time of writing.
- Metrics and rising TVL indicate growing strength of the ecosystem.
Solana [SOL] Showing signs of a potential bullish breakout after a successful test of key support. The altcoin has been consolidating within a bullish pennant pattern for the past five months.
Over the past 24 hours, SOL has bounced off the lower boundary of the pennant pattern, indicating increased buying pressure at this support level.
This major support could act as a launch pad for a potential upside rally to the next resistance level at around $153.
The $153 resistance level is important for SOL bulls. A clear break above this level could lead to the return of buying pressure and pave the way for a retest of the previous highs.
Source: Trading View
Low selling pressure fuels bulls
In addition to the above price action, DeFiLlama’s Net Flow data indicates that sellers have decreased significantly over the past 24 hours.
Accordingly, net inflow decreased from 9.58 million to -0.32 million at press time, indicating reduced selling pressure.
Source: Devilama
SOL DeFi Flexes Its Muscles
In addition to the declining net flow, Solana’s total value locked (TVL) has been on an increasing trajectory, indicating growing confidence in the DeFi ecosystem among the network’s users.
The growth means additional funds are being deposited into Solana-based protocols, which is a positive indicator for the network’s adoption.
Source: Devilama
Furthermore, development activities geared toward improving the Solana network have ramped up in recent weeks, according to Santiment data.
Historically, this increase in development activity has caused a significant price spike. This is a positive sign for Solana bulls.
Source: Feelings
Read Solana’s book [SOL] Price forecast 2024-25
Meanwhile, social volume indicated a general gradual increase. This increased social interest often leads to increased trading activity and price movements.
Source: Feelings
The confluence of SOL’s technical and metrics paints a bullish picture. If Solana breaks the ascending resistance level, we could see further price increases.
