Solana (SOL) is showing fresh signs of strength after a challenging March and early April, raising hopes among investors that a structural rally may be underway. As of April 29, SOL is trading around $148.96, boasting a market cap of approximately $77 billion. The token recently hit a multi-week high of $153, supported by improved sentiment in the broader altcoin and Bitcoin markets.
Despite a minor pullback of about 2.5% over the past 24 hours, Solana’s daily trading volume remains robust at approximately $3.08 billion, indicating strong trader engagement. Over the past week, SOL has posted gains close to 10%, hinting that buyer confidence may be returning after an extended correction from March’s highs.
Solana Overtakes Ethereum in DeFi Volume
Solana’s recent momentum can largely be attributed to its growing dominance in decentralized finance (DeFi). Over the past 24 hours, Solana captured nearly 38% of all decentralized exchange (DEX) activity, recording about $3.39 billion in volume outpacing Ethereum, which processed around $1.65 billion.
Key drivers behind Solana’s rising activity include a substantial drop in transaction fees now averaging $0.0025, their lowest in six months and increased network efficiency. Lower fees and faster transaction speeds are making Solana an increasingly preferred option for developers and users seeking scalable DeFi solutions.
Additionally, 1inch Network has expanded its services onto Solana, giving users access to over one million Solana-based tokens and integrating its Fusion protocol. This move opens up new liquidity avenues and offers developers six new APIs, further strengthening the Solana ecosystem.
Recent data also shows Solana outperforming competitors across key metrics:
- 33% higher DEX volume than Ethereum and top layer-2 solutions
- 400% more transactions processed
- 180% more active addresses supported, according to Dune Analytics
Institutional interest is also on the rise. DeFi Development Corp. (formerly Janover) revealed plans to deepen its Solana holdings as part of a $1 billion securities offering, already acquiring $48.2 million worth of SOL and planning to operate validators on the network.
Solana Technical Analysis
From a technical standpoint, Solana’s outlook presents a cautiously bullish picture.
- The daily Relative Strength Index (RSI) stands at 61.36, suggesting neutral momentum with room for further gains before reaching overbought territory.
- However, a bearish MACD crossover has formed, signaling potential short-term selling pressure.
- The 50-day Simple Moving Average (SMA) at $131 remains above current trading levels, signaling intermediate-term bullish support.
- Meanwhile, the 200-day SMA near $181 serves as a longer-term resistance zone.
On the four-hour chart, Solana appears to be forming a bullish flag around the $145 range. A breakout above $150 could pave the way for a retest of the $160 level. Weekly timeframes also highlight a bullish engulfing candle, often interpreted as a strong continuation signal.
If momentum continues, analysts believe Solana could challenge the $180 to $205 zone over the coming months.
Solana Price Prediction
Longer-term forecasts vary significantly based on market models and technical setups.
- Technical analysts have identified a potential cup-and-handle formation stretching from mid-2022 through early 2024. If confirmed, a breakout above the $195-$200 resistance could project SOL toward $392 using classical pattern measurements.
- Some longer-term interpretations even suggest targets ranging between $600 and $3,300, although such projections would require ideal market conditions.
Shorter-term forecasts remain more cautious:
- CoinCodex projects SOL hovering around $150.77 over the next five days, potentially dipping to $137.51 over the next three months.
- DigitalCoinPrice presents a bullish 2025 scenario, predicting an average SOL price of around $293.91, with a peak near $325.80.
Looking further out, DigitalCoinPrice forecasts Solana reaching average prices of approximately $521.54 by 2027 and $794.91 by 2030.
While structural patterns and fundamental growth present compelling opportunities, traders should remain cautious. Cryptocurrency markets are highly volatile, and while technical and macro indicators provide guidance, they do not guarantee outcomes.
