Solana Surges 47% in a Month, Reaches 2-Month High on DeFi Activity

Solana (SOL) has recently experienced a significant surge, reaching a 2-month high of $178.33. The cryptocurrency is currently trading around $174.59, marking a 47% increase over the past month and a 20% rise in the last week. This rally is driven by a combination of technical breakouts, rising decentralized finance (DeFi) activity, and improving market sentiment.

One of the primary factors contributing to Solana’s recent surge is its growing influence in the DeFi sector. According to DefiLlama, Solana recorded $3.32 billion in 24-hour decentralized exchange (DEX) volume, capturing nearly 29% of the entire DEX market. This highlights Solana’s scalability and speed, making it an increasingly attractive choice for traders and developers. Additionally, Solana has seen over $165 million in cross-chain inflows in the past month, with significant funds coming from Ethereum ($80.4 million), Arbitrum ($44 million), Base ($20 million), and smaller amounts from BNB Chain and Sonic. These inflows underscore the growing confidence in Solana as a preferred network for DeFi and cross-chain transactions.

Technical analysis also supports a bullish outlook for Solana. The cryptocurrency recently cleared its 200-day exponential moving average (EMA) and the key 1.618 Fibonacci extension at $167.39, confirming a strong bullish reversal. The price has also formed a “three white soldiers” pattern, a classic bullish signal, indicating sustained buying interest. Immediate resistance now stands at $178.33, with further targets at $183.95 and $189.60 if the momentum continues. However, the MACD is showing early signs of divergence, suggesting that bullish momentum might be cooling. Traders should watch for a potential pullback to the $167.39 support zone, which aligns closely with the 50-day EMA at $165.66. A decisive break and hold above this level could pave the way for further upside in the coming weeks or months, echoing the setup of previous major rallies.

The broader market sentiment is also supporting Solana’s rise. Recent comments about progress in US-China trade talks have eased global market fears, boosting risk appetite across asset classes. This improved sentiment has helped push the global crypto market cap to $3.33 trillion, providing a favorable backdrop for high-beta assets like Solana. Positive risk sentiment is benefiting altcoins, and easing US-China trade tensions are contributing to the overall bullish environment.

In conclusion, Solana’s strong technical setup, coupled with rising DeFi activity and macroeconomic tailwinds, suggests that a move toward $200 is possible in the coming weeks. However, traders should be cautious of potential pullbacks as the MACD signals possible weakening momentum. A break above the $178.33 resistance could set the stage for a push to $200, while a drop below $167.39 could signal a short-term correction.