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Solana (SOL) price is trading at $171.25 on July 25 with a bearish bias, down 1.45% over the last 24 hours.
Despite today’s correction, SOL has had an amazing run over the last 18 months, rallying more than 1,634% since January 2023 to the current levels.
This run has largely been fueled by airdrops, particularly of memecoins, which has increased network activity and investor confidence in the native token of the system, SOL.
SOL’s price action over the last one and half years is an assertion of increased relevance of the smart contracts network. This is backed by high network growth, evidenced by increased network activity and total value locked.
Its potential has been reinforced by high transaction volumes and growth in total value locked (TVL) on the platform.
Data from DefiLlama reveals that volume on Solana climbed to $3.68 billion on March 15, up from $15.22 million on Jan. 1, 2023. The blockchain’s high volume is currently at $1.64 billion, up 10,670% over the last 18 months.
Meanwhile, TVL on the network has jumped more than 2344% from $210.47 million to $5.145 billion over the same time period.
Network growth highlights increasing user engagement on the blockchain. This increases demand for the token, positively impacting the price.
Solana’s price displays strength as it trades in a rounded bottom chart pattern on July 25. The SOL price breached the $148 to $155 zone in its latest uptrend from the cup’s bottom. Note that this is where all the major exponential moving averages (EMAs) currently sit.
A number of technical indicators show that Solana’s upside is not over, starting with the Relative Strength Index (RSI), which is in the positive region and shows that the price is still rising. The price strength at 58 suggested that bulls are also in the driver’s seat for the SOL price.
As such Solana’s price could turnaround from the current “buy-the-rumour-sell-the-news” scenario related to the launch of spot Ethereum ETFs to rise above the neckline of the prevailing chart pattern at $186. Above that, the price of the layer-1 token could extend to reach the bullish target of the rounded bottom chart pattern at $252. This would bring the total gains to 47.74%.
On the downside, continued profit-taking could interrupt the rally, causing SOL to drop back below the psychological level at $150. The ensuing seller momentum could see the price drop to $135, embraced by the 200-day EMA, or in a dire case, flip the $121 support into resistance, thereby invalidating the bullish thesis.
