Solana News Today: Solana Price Rises 20.1% in 30 Days Amid DeFi Growth and Easing Sell Pressure

Solana’s price has experienced a turbulent week, dropping around 6% to trade below $200 despite having reached that level earlier in July. However, the broader trend over the past 30 days shows a 20.1% increase, making Solana one of the top-performing cryptocurrencies during a generally weak market [1]. The token’s price action is now being closely watched as it inches closer to key resistance levels and potential breakout points.

The DeFi ecosystem on Solana continues to expand, serving as a key indicator of network demand. In July, active DeFi addresses on the platform increased by 12.3%, and the total value locked (TVL) rose from $9.3 billion in early April to $13.4 billion by the end of July, a 44% increase [1]. This growth places Solana second in TVL among DeFi chains, behind Ethereum but ahead of Tron. Higher TVL indicates stronger engagement with lending, staking, and trading protocols, which can generate more fees and rewards for validators and users. This, in turn, builds long-term demand for SOL tokens, which could support a price recovery if broader market sentiment improves.

Retail selling pressure is also showing signs of easing. In the past week, Solana experienced $347 million in net outflows, meaning more SOL was being withdrawn from exchanges than deposited. As outflows continue, the immediate sell pressure on the network is diminishing, potentially setting the stage for a price rebound if buying interest increases [1]. In the derivatives market, the bullish bias is clear—$2.48 billion in long positions versus $1 billion in shorts over the next 30 days suggests traders expect an upward move. If the price begins to rise, short sellers may be forced to cover their positions, creating a short squeeze that could amplify the upward momentum.

Momentum indicators are also signaling a potential shift in Solana’s price trend. The bull-bear power (BBP) indicator, which measures the balance between buying and selling pressure, is moving closer to neutral after weeks of bearish dominance. A positive shift in BBP could indicate that buyers are regaining control of the price action [1]. Additionally, the Money Flow Index (MFI) has stabilized around 52 after a prolonged decline, suggesting that outflows have slowed and that fresh buying pressure may be entering the market. A move above 60 on the MFI would be a strong confirmation of renewed demand.

From a technical perspective, Solana recently fell to $169 after briefly testing support at $170, but bulls have shown resilience in pushing the price back toward $189. A breakout above $189 would likely trigger a test of the $206 Fibonacci retracement level, with $250 as a longer-term target. Analysts on social platforms have also highlighted these price levels as potential turning points [1]. While Solana has yet to break through these key resistances, the confluence of DeFi growth, improving on-chain flows, and weakening selling pressure suggests that the token is building the foundation for a potential rally.

The market remains cautious, and a strong buying volume is needed to confirm a reversal. If the momentum continues and more traders and investors take positions, Solana could see a renewed interest that challenges the $250 milestone in the near future.

Source: [1] Solana Price Eyes $250, Will This Help Revival Amid A Grim Market? (https://coinmarketcap.com/community/articles/688cfd1382f9e3262c432c77/)