Solana reclaims $200 — 3 reasons why SOL price is up 35% in seven days

Oct 25, 2021 | CoinTelegraph News | 0 comments

SOL price continues to climb, with Solana’s TVL also hitting a new high of nearly $14 billion.

The price of Solana’s native SOL coin edged up on Oct. 25 in the wake of a marketwide rally led by Bitcoin (BTC), with the total value locked (TVL) on Solana hitting record highs and SOL’s price seeing a promising technical setup.

Bitcoin triggers marketwide rally

SOL climbed by more than 6% to hit an intraday high of around $214. The price of SOL is now up a little over 35% over the past week, pushing it closer to its record high of about $222 set in early September.

Bitcoin’s run-up to its new record high of $67,000 last week resulted in the total crypto market capitalization passing the $2.5-trillion mark, a new milestone for the cryptocurrency.

Top 10 cryptocurrencies and their performance over the last seven days. Source: Messari

That helped push SOL higher, with rival cryptocurrencies Ether (ETH) and Cardano’s ADA also jumping by over 10% and 1% in the past week, respectively.

Solana TVL hits record high 

The SOL price rally also appeared as the TVL of all the decentralized finance (DeFi) projects built on the Solana blockchain reached a new record high of $13.53 billion, as per data aggregator service DeFi Llama.

Solana TVL hits another high. Source: Defi Llama

The most dominant DeFi project on the Solana blockchain is Saber, an automated market maker (AMM) protocol that enables Solana users and applications to trade between stable pairs of assets efficiently and earn yields by providing liquidity to the platform.

Its contribution to the Solana liquidity pool was $2.05 billion as of publication time.

Meanwhile, there are four other DeFi projects with a TVL of more than $1 billion. These include Raydium ($1.91 billion), Sunny ($1.73 billion), Serum ($1.69 billion) and Marinade Finance ($1.63 billion).

Solana also declared that it would add more DeFi projects to its list after the completion of its “Ignition” hackathon on Oct. 18. Users will need to hold SOL tokens to use these applications, to pay for transaction fees, thus raising the prospect of the token’s higher demand in the future.

SOL price technicals

SOL’s latest price rally came as part of a breakout move out of what appears like a bullish pennant. As Cointelegraph reported earlier, the technical outlook could send SOL to levels equal to the maximum distance between the pennant’s upper and lower trendline around $85.

SOL/USD daily price chart featuring pennant breakout. Source: TradingView

As a result, adding $85 to the breakout level around $158, SOL’s pennant price target is $243 U— i.e., almost $250. Meanwhile, a retest of the pennant’s upper trendline as support would risk invalidating the bullish setup.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should conduct your own research when making a decision.

News Source from CoinTelegraph.com

Related Articles

Crypto Analyst Says Bitcoin Could See A Parabolic Rally

Crypto Analyst Says Bitcoin Could See A Parabolic Rally

Last week, the price of Bitcoin crashed to below $50K. This signaled that the market might finally be nearing the dreaded bear market as billions of dollars in longs were liquidated with prices plunging to $45K. The bitcoin crash, as always, brought down the whole...

What to expect at Wednesday’s hearing on crypto before Congress

What to expect at Wednesday’s hearing on crypto before Congress

Quick Take The House Financial Services Committee will hear testimony from executives from six major players in U.S. crypto tomorrow.  The Block takes a look at the significance of the hearing, as well as the committee’s priorities for crypto legislation.  This...

Pin It on Pinterest

Share This