3 reasons why the price of SOL has increased 35% in seven days

The price of Solana’s native SOL coin soared on October 25th in the wake of a market-wide rally led by Bitcoin (BTC), with Total Locked Value (TVL) reaching all-time highs in Solana and the price of SOL being promising.

Bitcoin triggers a market-wide rally

SOL climbed over 6% to hit an intraday high of around $ 214. The price of SOL is up just over 35% in the past week, nearing its all-time high of around $ 222 in early September.

Bitcoin’s surge to its new record of $ 67,000 last week caused the cryptocurrency’s total market cap to surpass the $ 2.5 trillion mark, a new milestone for the cryptocurrency.

The top 10 cryptocurrencies and their performance over the past seven days. Source: Messari
3 reasons why the price of SOL has increased 35% in seven days
3 reasons why the price of SOL has increased 35% in seven days

This helped propel SOL higher, with competing cryptocurrencies Ether (ETH) and Cardanos ADA also rising more than 10% and 1%, respectively, over the past week.

Solanas TVL hits a record

SOL’s price rally also occurred when the TVL of all Decentralized Finance (DeFi) projects based on the Solana blockchain hit a new record of $ 13.53 billion., according to data aggregation service DeFi Llama.

Solanas TVL hits another record. Source: Defi Lama

The dominant DeFi project on Solana’s blockchain is Saber, an automated market maker (AMM) protocol that enables Solana users and applications to efficiently trade between stable pairs of assets and generate returns by making liquidity available to the platform is provided.

Their contribution to Solana’s liquidity pool at the time of publication was $ 2.05 billion.

In the meantime, 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 too explained that after completing its “Ignition” hackathon on October 18, it would add more DeFi projects to its list. Users need SOL tokens to use these applications and pay transaction fees, which increases the possibility of higher demand for the token in the future.

Technical aspects of the SOL award

SOL’s recent price rally was part of a breakout move from what looks like a bullish pennant. As Cointelegraph previously reported, the technical outlook could send SOL to levels corresponding to the maximum distance between the pennant’s upper and lower trendlines around $ 85.

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

As a result, the SOL Pennant’s target price is $ 243, or nearly $ 250 if the breakout level is increased by $ 85 by $ 158. Meanwhile, retesting 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 step of trading and investing involves risk and you should do your own research when making a decision.

Similar Posts