Solana price has rallied for two straight weeks and is now hovering at its highest level since February, and technicals suggest that the rally is just getting started.
Solana (SOL) rose to $177 on Monday, up by 85% from its lowest level in April, giving it a market cap of over $90 billion.
The surge has coincided with ongoing gains in the crypto and stock markets. Most importantly, it happened as most Solana meme coins jumped, bringing their market cap from $6 billion in April to $15 billion today.
Some of the top-gaining Solana meme coins have been Dogwifhat (WIF), Popcat (POPCAT), Peanut the Squirrel (PNUT), and Gigachad (GIGA).
This growth has triggered more inflows in decentralized finance protocols in the Solana ecosystem, bringing the total value locked to almost $10 billion.
It has also led to further stablecoin growth on the network, with total funds rising to nearly $14 billion. Higher stablecoin activity is a sign that a crypto network is more active, as these tokens are commonly used to facilitate transactions.
Solana’s price has jumped as volume on its decentralized exchanges (DEXs) continues to rise. It handled transactions worth over $3.4 billion in the last 24 hours, higher than BSC’s $2.65 billion and Ethereum’s $2.1 billion. It processed transactions worth $82 billion in the last 30 days, much higher than Ethereum’s $37 billion.
Solana also has more potential catalysts, including the upcoming SOL ETF approvals and accumulation by Wall Street firms like Janover and Upexi. It will likely benefit further as Bitcoin (BTC) is expected to continue rising in the coming months.
Solana price technical analysis
The weekly chart shows that Solana has rallied from last month’s low of $94.50 to $176. It remains slightly below the critical resistance level at $258, which marks the upper boundary of the cup-and-handle pattern that has been forming since November 2021.
Solana has stayed above the 50-week moving average, while both the Relative Strength Index (RSI) and the MACD are pointing upward.
The cup has a depth of about 97%, suggesting a potential price target of $500. This target is derived by projecting the same distance from the top of the cup. A drop below the lower boundary of the handle at $94.50 would invalidate the bullish outlook.
