- Solana has recently retested a critical pennant support, indicating potential bullish momentum.
- Key metrics and a rising Total Value Locked (TVL) suggest a strengthening ecosystem.
Solana [SOL] is displaying indications of a bullish breakout following a successful support test. The altcoin has been consolidating within a bullish pennant pattern for the past five months.
In the last 24 hours, SOL bounced off the lower boundary of the pennant pattern, signaling increased buying activity at this support level.
This pivotal support could serve as a launchpad for a potential bullish surge towards the next resistance level around $153.
The $153 resistance is significant for SOL bulls, as a clear breach above this level could reignite buying pressure and set the stage for a retest of previous highs.
Source: TradingView
Diminished selling pressure empowers bulls
Further supporting the price action, DeFiLlama’s Net Flow data indicates a significant reduction in sellers over the past 24 hours.
Source: DeFiLlama
SOL DeFi showcases its strength
In addition to reduced net flow, Solana’s Total Value Locked (TVL) demonstrates an upward trend, reflecting growing confidence in the DeFi ecosystem.
Source: DefiLlama
Furthermore, development activities aimed at enhancing the Solana network have surged in recent weeks, according to Santiment data.
Source: Santiment
Read Solana’s [SOL] Price Prediction 2024-25
Source: Santiment
The combination of SOL’s technical and on-chain metrics paints a bullish outlook. If Solana breaks above the resistance level, further price upswings are anticipated.
Vocabulary List:
- Retested /ˌriːˈtɛstɪd/ (verb): To conduct a test or evaluation again.
- Pivotal /ˈpɪv.ə.təl/ (adjective): Of crucial importance in relation to the development or success of something.
- Momentum /məˈmɛn.təm/ (noun): The impetus gained by a moving object or course of events.
- Consolidating /kənˈsɒl.ɪ.deɪ.tɪŋ/ (verb): To make something physically stronger or more solid.
- Ecosystem /ˈiː.kəʊˌsɪs.təm/ (noun): A biological community of interacting organisms and their physical environment.
- Surge /sɜːrdʒ/ (verb): To move suddenly and powerfully forward or upward.
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