Solana Is Up 8%, Is The Storm Over Or Is The Worst Yet To Come?

From red to green, suddenly, the crypto market regained strength. Thanks to Jerome Powell and the cheerful FOMC team who, with their announcements, evidently gave a boost to investors. Bitcoin and altcoins followed suit, taking advantage of a bullish momentum. Among them, Solana stood out with an 8% increase in a single day, igniting traders’ interest. But is this upward trend sustainable?

Solana skyrockets with an 8% rise: just a flash in the pan?

The FED chose to maintain its rates, that is a fact. But the crypto market followed the movements of U.S. stock indices, notably the Russell 2000, which jumped to its highest level in twelve days. Interestingly, this push of Solana is not due to specific announcements about its ecosystem but is part of a broader context of renewed risk appetite among investors.

Despite a global slowdown in DApps activity, Solana continues to attract incoming flows and strengthens its position.

While its on-chain volumes have dropped by 47% over two weeks, a similar phenomenon is affecting Ethereum, Arbitrum, and Avalanche. However, Solana shows impressive resilience: its Total Value Locked (TVL) rose to 53.2 million SOL, marking a 10% increase over a month.

This growth outpaces that of BNB Chain (+6%), while Tron, on the other hand, sees its deposits decline by 8%.

Other signals confirm this resilience:

• Bybit Staking shows a 51% increase in its deposits since February.
• The perpetual trading platform Drift records a 36% increase in its TVL.
• The restaking application Fragmentic sees a 65% explosion in SOL deposits.

With a TVL of $6.8 billion, Solana establishes itself as the second-largest blockchain in locked value, far surpassing BNB Chain. Despite a decline in DApps activity, some Solana platforms like Jupiter, Pump.fun, and Jito generate higher fees than giants like Uniswap.

Last noteworthy fact: Solana’s weekly fees recently surpassed those of Ethereum, a strong sign of its growing adoption.

Is crypto SOL ready for a new flight despite market uncertainties?

Despite a 27% drop in the price of SOL over the past 30 days, leveraged traders did not massively bet on its decline. A sign that selling pressure is not enough to shake Solana crypto. This is evidenced by the futures funding rate, which has remained balanced between buyers and sellers.

Crypto analyst AgentXBT points out that SOL seems to be in an accumulation phase:

Solana continues to consolidate in an increasingly narrow range. Its current action suggests an accumulation phase, foreshadowing a more pronounced movement.

Several technical indicators confirm this: an RSI of 41.66 indicating bullish potential and low volatility (BB Width at 12.34%), suggesting an imminent price explosion.

Investors are also monitoring the dynamics of token unlocks. In April, 2.72 million SOL will be released, but only 0.79 million in May and June. A decreasing supply, combined with potentially increasing demand, could well propel SOL beyond $170.

To see Solana reach $180, several conditions must be met: the interest of leveraged traders, stable demand, and an increase in trading volume. Will the market wait for the right moment to move forward?