Can Solana’s SOL Surpass $220 Amid Rising Liquidity and Market Uncertainties?

• As liquidity flows in and usage picks up, Solana’s potential for a breakout is undeniable. But can SOL break through?

• SOL was showing strong signs of life, with its TVL nearing a new ATH and bullish performance across key internal metrics.

• All signs pointed to continued momentum, but market volatility could still impact SOL’s trajectory.

With rising liquidity and robust tech, Solana [SOL] shows potential for a breakout as its Total Value Locked approaches $12 billion, signaling growing confidence.

Solana’s tech is powering SOL’s comeback

Statistically, SOL only needs a 20% push to reach its all-time high (ATH). With its impressive resurgence this New Year, many might think that’s a walk in the park.

Solana is showing strong signs of life with its cutting-edge tech and rising transactional volume. The 13% jump in network fees to $16,698.88 in the last 24 hours indicates high network usage.

But it doesn’t stop there. Pumpfun, Solana’s token creation initiative, is gaining traction too, with daily addresses nearing 250K. This signals that liquidity is flowing through the network for multiple use cases. TVL is just the tip of the iceberg.

Digging deeper, the return on staking is rising too, jumping by 5% to hit 8.5%.

Higher yields are fueling more demand for SOL, as investors flock to stake their tokens for better returns. This growing demand is reflected in the rising TVL, showing more liquidity being locked up.

Source: CompassFT

In short, Solana’s robust tech is fueling mass adoption and bringing fresh liquidity to its network. But what does this mean for its price?

SOL kicked off the new year with a double-digit surge. Key indicators like the MACD crossover are turning bullish, and the RSI hasn’t hit overbought levels. If this momentum continues, a sustained rally seems likely.

But certain factors shouldn’t be overlooked

For Solana to break past $220, it needs a perfect storm – bullish internal and external trends aligning seamlessly, with no contradictions.

Internally, Solana kicked off 2025 with impressive momentum, starting at $190, and Open Interest (OI) at $4.78 billion. Fast-forward to today, and it’s already surged to $215, with OI jumping to $5.85 billion – a stunning 22.38% rise in just one week.

But that’s not all. Solana’s double-digit surge also brought the SOL/BTC pair into the green, signaling that investors were seeing it as a serious contender, which is backed up by a noticeable spike in trading volume.

However, this momentum didn’t last long. As Bitcoin nears the $100K mark, external factors are shifting again, and the SOL/BTC pair has dipped back into the red.

This raises questions about whether Solana’s recent rally was just a temporary spike driven by users flocking to its network for speed and higher returns.

From a strategic investor’s perspective, Solana still has a long way to go in attracting capital and competing with other assets.

The road to breaking $220 isn’t guaranteed, but if Solana can overcome external pressures, it could pave the way for a potential breakthrough.

Conclusion

As the crypto market evolves, Solana stands at a pivotal juncture. Its technology and growing liquidity signal strong potential, but investors must remain cautious. The upcoming weeks will be crucial as SOL navigates market pressures while aiming for that elusive breakout past $220.