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Solana (SOL) has surged 86% since its low of $95 on April 7, driven by increased market activity and an optimistic outlook for the altcoin’s future.
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As April’s lows gave way to a robust rally, SOL’s total value locked (TVL) saw a remarkable rise, indicating growing investor confidence.
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A leading analyst noted, “The V-shaped recovery trend indicates potential for SOL to reach new all-time highs, targeting prices above $300.”
Solana (SOL) surges 86% since April lows, supported by a booming TVL and active memecoin market, positioning for potential all-time highs.
Solana’s TVL Up 54% Since April 7
The total value locked (TVL) on the Solana blockchain has increased significantly, rising by over 54% to reach $9.44 billion by May 26. This growth marks a recovery from the multimonth lows of $6.12 billion recorded on April 7. Over the past month, the TVL has also grown nearly 20%.
According to data from DefiLlama, the primary driver of this TVL increase was the decentralized exchange, Raydium, which boasts a remarkable 52% surge in just one month. Other notable platforms, including Jupiter DEX, Jito liquid staking, and Kamino Lending, also contributed to this growth with gains of 12%, 25%, and 11%, respectively.
In terms of market capitalization, Solana currently ranks as the fifth-largest cryptocurrency globally, boasting a TVL that outpaces Ethereum’s layer-2 ecosystem, which includes Base, Arbitrum, and Optimism, as well as the BNB Chain.
Solana Memecoin Market Cap Gains 65%
The upward trend in Solana’s TVL has mirrored a corresponding increase in the market capitalization of Solana-based memecoins, with prices recovering across the board. The memecoin segment witnessed a significant surge, driving the collective market cap to $13.4 billion by May 26, a remarkable 65% increase from $8.1 billion on April 8.
Despite some tokens experiencing double-digit losses in recent weeks, the overall performance in this sector illustrates a strong revival post-April lows. Notably, increased decentralized exchange activity has fueled demand for Solana’s memecoins, a trend indicative of the blockchain’s rising adoption.
SOL’s “V” Chart Pattern Targets All-Time Highs
A critical analysis of SOL’s price movement has unveiled a distinct V-shaped recovery pattern forming on the weekly chart since January. This technical pattern suggests a bullish outlook, typically marked by a rapid price ascent following a substantial decline, culminating when the asset reaches the neckline of the V formation.
Currently, SOL trades within a notable supply-demand zone between $180 and $200. A decisive breakout from this level is essential for advancing toward the neckline at $252, thereby completing the V-shaped recovery. Achieving this target opens up the path towards surpassing the previous all-time high of $295, representing a potential 66% increase from current levels.
The relative strength index (RSI), a critical momentum indicator, has recently climbed to 53, up from 36 at the end of March, indicating increasing bullish momentum within the market.
Conclusion
As Solana’s ecosystem continues to evolve with increased TVL and expanding memecoin participation, the overall outlook remains optimistic. Should SOL break the resistance at $180, it could rapidly ascend towards its all-time highs, resonating with the broader altcoin market’s recovery trends. Investors are advised to monitor upcoming price movements closely, as a breakout could signal significant bullish advances.
