Solana's SOL Surges 4.5% Amid ETF Launch and DEX Activity
2min read Solana's token, sol, experienced a notable surge of 4.5% on Thursday, outperforming the broader market which saw a rise of approximately 3% as indicated by the CoinDesk 20 gauge. This upward movement comes amidst a backdrop of global economic tensions and trade policy uncertainties that have been creating volatility in the crypto market. Despite these challenges, SOL has shown resilience, navigating the market better than many of its alternatives.
The price of SOL has established a critical support zone between $125 and $127, which has successfully rejected multiple downside attempts. This support zone has been crucial in maintaining the token's value. Additionally, the $133.50-$133.60 area has been identified as significant resistance, according to technical analysis models. Blockchain data reveals that over 32 million SOL, representing more than 5% of the total supply, has been accumulated at the $129.79 level, making it a pivotal point for future price movements.
One of the key drivers behind SOL's recent surge is the launch of the first spot Solana ETFs in North America on April 16. These ETFs, issued by asset managers including 3iQ, Purpose, Evolve, and ci, have boosted institutional interest in Solana. This development is significant as it provides a new avenue for investors to gain exposure to Solana without directly holding the cryptocurrency, potentially increasing its adoption and value.
Solana has also reclaimed the top spot in decentralized exchange (DEX) activity, surpassing Ethereum after a 16% gain over seven days. The total value locked (TVL) in Solana's DEXs has increased by 12% to $7.08 billion, indicating a growing interest and confidence in the platform's capabilities. This resurgence in dex activity further solidifies Solana's position as a leading player in the decentralized finance (DeFi) space.
Technical analysis highlights the strong resiliency of SOL, which has recovered 4.5% from its April 16th low of $123.64 to $135.57, establishing a clear uptrend. The Fibonacci retracement from the April 14th high of $136.01 to the April 16 low suggests that the recent rally has reclaimed the critical 61.8% level, indicating a bullish momentum. However, in the final 100 minutes of trading, SOL experienced a significant downward correction, plummeting from $134.11 to $130.81, representing a 2.5% decline. The sell-off intensified around 14:03-14:07, when volume spiked dramatically to over 92,000 units during a single-minute candle.
A strong resistance zone at $133.50-$133.60 rejected multiple recovery attempts, and a notable breakdown occurred at the $132.00 support level, triggering cascading liquidations. Prices have now retraced beyond the 78.6% Fibonacci level, suggesting potential continuation toward the $125-127 support zone if bearish momentum persists. Despite these fluctuations, the overall trend for SOL remains positive, with the launch of spot ETFs and increased DEX activity contributing to its growth and stability in the market.
