- At the current time, Solana has retested a crucial support within a pennant pattern.
- Various metrics and a rising Total Value Locked (TVL) suggest a strengthening ecosystem.
Solana [SOL] is displaying potential for a bullish breakout following a successful test of key support. The coin has been consolidating within a bullish pennant formation for the last five months.
Over the past 24 hours, SOL has rebounded from the lower edge of the pennant, signaling increased buying pressure at this support level.
This support level could serve as a springboard for a potential bullish surge towards the next resistance around $153.
The $153 resistance is crucial for SOL bulls, as a clear break above this level could trigger renewed buying pressure and pave the way for a retest of previous highs.
Source: TradingView
Decline in selling pressure boosts bullish sentiment
Additionally, data from DeFiLlama’s Net Flow shows a significant decrease in sellers over the past 24 hours.
The Net Flow indicator dropped from 9.58 million to -0.32 million, indicating reduced selling pressure.
Source: DeFiLlama
SOL’s DeFi sector demonstrates strength
In line with the reduced net flow, Solana’s Total Value Locked (TVL) is on an upward trajectory, indicating growing confidence in the DeFi ecosystem.
The increase reflects more funds being deposited into Solana-based protocols, a positive sign of network adoption.
Source: DefiLlama
Furthermore, Santiment data shows a surge in development activities aimed at enhancing the Solana network in recent weeks.
Historically, such spikes in development activity have led to significant price rallies, a positive indicator for Solana bulls.
Source: Santiment
Read Solana’s [SOL] Price Prediction 2024-25
Furthermore, Social Volume has been gradually increasing, indicating a rise in social attention which often correlates with heightened trading activity and price fluctuations.
Source: Santiment
The combination of SOL’s technical and on-chain indicators paints a bullish outlook, with potential price rallies if the bullish resistance level is breached.
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