Solana SOL Price Analysis: A Fresh Upswing as Market Recovers

Solana price analysis shows that SOL has experienced a noticeable upturn, reflecting a broader recovery in the cryptocurrency market. Today, the price of SOL has reached $158.26, marking a 2.52% increase over the last 24 hours. This surge aligns with a modest recovery across major cryptocurrencies, driven by easing geopolitical tensions and the recent Bitcoin halving.

The rebound in Solana's price is significant, considering its performance over the past week. Data from Coinmarketcap indicates that SOL's price was up approximately 2.52% in the last 24 hours and 32.6% from its local low of around $120, established a week ago. This increase is part of a broader positive trend that Solana has been riding over the past few months. The smart contract token has soared more than 88% over the last six months and 56% year-to-date.

Solana's network performance backs SOL price

The Solana network remains a key player in the layer 1 sector, accounting for over 30% of daily transactions across major layer 1 and layer 2 networks. This high transaction activity, as reported by on-chain fundamentals platform Artemis, has bolstered Solana's position against other top layer 1 protocols in terms of transaction fees. On-chain metrics tracker The Block Pro highlighted that Solana's total transaction fees surged by approximately 417%, outpacing competitors like BNB Chain and Tron.

Further reinforcing SOL's bullish trend is the increase in the Total Value Locked (TVL) in its smart contracts. According to DefiLlama, Solana's TVL rose from $3.36 billion on April 18 to $4.02 billion on April 23, a 19% increase in just five days. The uptick in TVL coincided with the rise in SOL's price, which saw more than a 15% increase over the same period. Currently, Solana's market capitalization stands at $70.6 billion, making it the fifth-largest crypto by market value.

SOL's Technical Setup Points to a Breakout

The recent rally in SOL price on April 23 is part of a recovery trend initiated after finding support at the $130 demand area on April 17. SOL has managed to reclaim a crucial support level provided by the 50-day exponential moving average (EMA) at $156.42, suggesting a potential bullish momentum. 

The MACD's cross on April 23 serves as a buy signal, indicating the asset may be undervalued and poised for a rebound. If this trend continues, SOL/USD will see a 28% recovery towards the neckline of the v-shaped recovery chart pattern at around $202 over the next few days.

SOL price has initiated an upward move from the $120 support zone, surpassing key resistance levels at $132 and $140. A break above the $150 resistance zone was also observed, with a notable surge in trading activity.

Currently trading above $152 and the 55 simple moving average (4 hours), SOL faces immediate resistance near the $160 level, followed by the $165 zone. On the downside, initial support is near $148, with further support at $140. A sustained move above $165 could pave the way for SOL's ascent towards the $185 and $200 resistance levels.