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Solana has shown an impressive comeback recently despite the drop in the last 24 hours. Currently trading at $155.34, SOL has seen a 2.78% drop in the last 24 hours. With a market cap of $72.4 billion it holds the 5th position among top cryptos. Its 24 hour trading volume is now at $3.125 also showing a 37.44% drop.
This Ethereum killer journey since Q3 2024 has been great, marked by periodic rallies and quick recoveries during market downturns. This week alone SOL has surged nearly 50% following a recent market crash. It bounced back from a low of $110 on Monday to reach $163.70 by Thursday evening outperforming many top 10 cryptos by market cap.
Solana ecosystem growth has also been a key driver of its recent success. The total value locked (TVL) has surged from $1.269 billion on January 23rd to an impressive $4.95 billion as of writing.
This influx of crypto solutions into the Solana ecosystem has caught the attention of analysts who are closely monitoring the blockchain activities and their potential impact on SOL's price.
The year started with a sharp uptrend with SOL nearly reaching its all-time high (ATH) of $259 in March. However, this rally was followed by a reversal which saw the price dip to a low of $109 during the recent market crash.
The rebound since the crash has been great, with SOL climbing from $109 to back above $160 in less than a week. This price action also shows SOL locked in a bullish pennant pattern, raising questions about whether the $109 dip was the last we'll see before SOL reaches $200 again.
Analysing the technical indicators, the daily RSI currently stands at 48 having recovered from oversold territory during the crash. This resurgence indicates building bullish momentum, with plenty of room for further upside movement before reaching overbought conditions.
While the MACD is still bearish, a bullish crossover appears imminent potentially signaling a shift in market sentiment.
SOL is currently approaching the bullish pennant resistance. A successful push above this level could fuel further bullish momentum. The next key target lies at the $180 level where the bullish pennant resistance is located. If the recent post-crash momentum persists then there's a high likelihood of price breaking above this key resistance potentially paving the way for a surge back to $200.
The SOL Long/Short ratio chart from Coinglass shows a strongly bullish sentiment since early August, with long positions significantly outnumbering short ones. This ratio supports the bullish case for SOL's price action.
In a post shared on X, a prominent crypto analyst Miles Deutscher shared his optimistic outlook on Solana's future performance. Despite the recent gains, Deutscher believes SOL's upward trajectory could continue, even suggesting a potential $1,000 price target in the long term.
