Solana's Price Surges 18% This Week, Bullish Momentum Builds

Generated by AI AgentCoin World
Friday, May 9, 2025 6:07 pm ET1min read
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Solana's price has surged by 18% this week, indicating a rising bullish momentum. The cryptocurrency is approaching a critical juncture, with the potential to close above the 50-week exponential moving average (EMA), a level that has historically triggered significant rallies. In March,

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dipped below the 50-week EMA and briefly fell under $100 on April 7. Since then, Solana has made a strong recovery, reclaiming key EMA levels (100W and 200W), with the 50-week EMA now in focus.

Historical data supports a bullish outlook for Solana. In October 2023, SOL breached the 50- and 100-week EMAs, consolidating above these levels before rallying 515% by March 2024. The relative strength index (RSI) was below 50 during both periods, similar to the current setup, with the indicator rebounding above 50 after the 50-week EMA flipped to support. If the 50-week moving average holds, the price targets for SOL could be between $250 and $350 by September 2025.

The daily chart further supports this narrative. Solana recently closed above the 200-day EMA, with immediate resistance at $180. A break above this level in the coming weeks and turning the range into a support level could potentially ignite a parabolic rally by Q3 2025. The recent surge in liquidity, with over $165 million bridged to Solana from other blockchains in the last 30 days, reflects growing confidence in the network. Ethereum led with $80.4 million in transfers, followed by Arbitrum with $44 million. Similarly, data from DefiLlama indicates that Solana posted the highest decentralized exchange (DEX) volumes, 3.32 billion, over the past 24 hours. The network currently holds 28.99% of the market share among other chains.

With a 28.99% market share among competing chains, Solana’s dominance in DeFi activity highlights its scalability and user adoption. Currently, substantial liquidity inflows and strong DEX volumes position Solana for a sustained price breakout. The recent performance of Solana, coupled with historical patterns and current market indicators, suggests a strong bullish momentum for the cryptocurrency. Investors and traders should closely monitor these developments as they could significantly impact the price of SOL in the coming months.