SOL bulls are struggling to assert their position in the market after the smart contracts token’s uptrend lost momentum. Solana price analysis and recovery from Monday’s drastic crash to $110 increased the probability of an extended climb to $200, supported by a noticeable growth in the decentralized finance (DeFi) sector.
Solana Price Analysis: What’s Ahead As DeFi Txs Hit 36.2M
The current Solana price analysis hints at a continuing uptrend despite the rejection from $160. Traders expect short-term support at $150 to come in handy and absorb the selling pressure, reversing the trend upwards.
According to Defi Llama, Solana’s DeFi activity is positive, with transactions exceeding 36.2 million from approximately 966,000 active addresses. Additionally, the total value locked (TVL), which shows the sum of all the value locked in smart contracts within the ecosystem, recovered to $4.95 billion from August 5’s $3.8 billion.
It is worth mentioning that rising TVL generally correlates with increasing asset prices. A higher DeFi TVL indicates growing investor confidence in SOL price which suggests that more capital is currently being invested in the ecosystem, through staking. This can boost demand for SOL thereby driving the price upwards toward the coveted $200 mark.
In a previous Solana price prediction, experts at CoinGape highlighted the impact of spot Solana ETF approval before the end of the year. Two spot ETFs are operational: Bitcoin ETFs since January and Ethereum ETFs since July.
Brazil’s Securities and Exchange Commission (SEC) made headlines on Thursday after taking a major step toward the approval of spot a Solana ETF. The US SEC is expected to review several SOL ETF proposals and either approve or reject them. Approvals could significantly increase the chances of Solana price analysis expanding the scope above $200 and even to a new all-time high.
SOL Price Set To Resume Rally
Solana price reinforces the bullish outlook, shrugging off resistance at $160. Moreover, short-term support could encourage traders to capitalize on key dollar cost average (DCA) strategies, targeting a fresh breakout to $180 and then to $200.
Conservative traders may want to wait for a potential buy signal from the Moving Average Convergence Divergence (MACD) indicator. The blue MACD line must cross above the red signal line in the daily timeframe to validate the bullish thesis.
Nevertheless, it is crucial to remember Solana’s position below a confluence created by the 20-day Exponential Moving Average (EMA) and the 50-day EMA at $156. If this region is not reclaimed as support in the coming sessions, the chances of SOL price falling to $140 will increase drastically. The 200-day EMA strengthens this support which must hold to prevent the token from tumbling to $130.
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from CoinGape