- Solana recently ended a 4-month period of consolidation with a breakout from a triangle pattern.
- The SOL price surged 41.3% to $172.2, accompanied by a 27.6% increase in Total Value Locked (TVL) and a 26% rise in active addresses.
- “The 20-day EMA crossing above the 50-and-100-day EMAs slope highlights buyers are gradually strengthening their hold over this asset,” noted a market expert.
Discover how Solana’s breakout from a prolonged consolidation phase is poised to initiate a new bullish cycle, driving significant market activity and investor interest.
Solana’s Triangle Pattern Breakout Marks New Bullish Cycle
Solana’s price analysis indicates the end of a four-month consolidation phase, culminating in a breakout from a triangle pattern. This price action flipped the $170 region into a possible support level. The breakout saw SOL prices surge by 41.3%, reaching $172.2, while the TVL on the Solana network grew by 27.6%. This growth in TVL signifies increasing investor confidence and capital inflows.
Technical Indicators Point to Strengthening Bullish Momentum
The 20-day Exponential Moving Average (EMA) crossing above the 50-and-100-day EMA slopes is a bullish signal, highlighting the increased buying momentum. This crossover suggests that buyers are steadily gaining strength, which could push the SOL price higher. However, the recent 13.7% decline in 24-hour trading volume to $1.89 billion suggests that traders are cautiously optimistic.
On-Chain Metrics Reflect Increased User Engagement
Solana’s on-chain metrics offer valuable insights into its recent price dynamics. The number of active addresses on the Solana network increased by 26%, rising from 1.44 million to 1.82 million. This uptick in active addresses indicates heightened user engagement and growing interaction with the Solana blockchain, which typically precedes a stronger market sentiment for the asset.
Recovery in Total Value Locked (TVL) Shows Boost in Investor Confidence
The Total Value Locked (TVL) in Solana has climbed impressively from $4.02 billion to $5.13 billion, marking a 27.6% increase. This rise in TVL demonstrates that more assets are being deposited into the Solana network, indicative of increased trust and interest from investors. Higher TVL often correlates with an upward price trajectory as it reflects broader asset utilization within the network.
Future Outlook: Potential for Continued Rally
If the triangle breakout maintains its momentum, Solana’s price could aim to surpass the $210 level, with a potential target of $325. Should the triangle be part of a broader pennant formation, the higher long-term target could reach up to $1420. Critical indicators such as the ADX slope at 22% also suggest that the ongoing recovery possesses sufficient momentum for a continued rally.
Conclusion
The recent breakout from the four-month consolidation phase signals a possible bullish rally for Solana, supported by robust on-chain metrics and technical indicators. With increased active addresses and rising TVL, investor confidence in Solana appears to be strengthening. If these trends continue, the SOL coin could see substantial gains, making it a key asset to watch in the cryptocurrency market.
