Solana (SOL) is displaying upward momentum, and with it, causing some bullish optimism among crypto investors and analysts. The community sentiment is reflected in the network’s Total Value Locked (TVL), which has surged, among other key indicators, heralding a big breakout ahead. Bullish signals on the Solana horizon growing whale accumulation, unwavering spot inflows and a pumped up DeFi scene has folks excited about its potential as a market mover.
Solana’s TVL increased by 3.11% over the last 24 hours. This astonishing increase has brought the total value over $9.018 billion! This spike indicates that Solana is well on its way to reclaiming its wave in the DeFi ecosystem. It’s luring both liquidity providers and consumers of decentralized applications. The market structure for Solana is becoming more bullish which implies a lot more room to grow.
Here are a few reasons that have both fundamentals and technicals leaning strongly bullish on Solana. Increased whale ownership shows increased confidence among large investors. Spot inflows are still quite strong, suggesting continued accumulation. The return of DeFi activity onto the Solana network adds back to the good vibes surrounding the cryptocurrency.
Solana’s price is currently trading just below $139, placing SOL price right under an important breakout catalyst. That cryptocurrency just recently broke out above a solid downtrend line, which was the top of the classic cup and handle pattern. This bullish pattern opens the door for a major upside if Solana manages to clear the neck resistance at $144.40.
A potential successful breakout of the cup and handle formation has the potential to be mega-profitable for investors. Only on a strong close above the neckline would the pattern be confirmed. This might lead to an eventual increase in price targets, such as $179.48. If it doesn’t break out, we could see a re-consolidation period within that $135-$140 box.
The increasing DeFi development happening on the Solana network deepens that bullish case. Those returning to DeFi make it a perfect time to experience the renewed excitement and usefulness of the Solana blockchain. On April 20, Solana netted inflows of $96.27 million compared to outflows of $88.36 million, suggesting a positive investment momentum.
Built on innovation and scalability, Solana has tremendous potential that investors have not yet realized. This convergence of bullish technical indicators, on-chain data, and renewed DeFi activity paint a picture of a bullish future for the cryptocurrency. Both the investor community and crypto enthusiasts are keen to see how Solana performs price-wise in the next few days. A successful breakout will likely ignite one more powerful relief rally.
