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Solana Price Aims for $220 After 15% TVL Surge In July   – Crypto News

Published

12 months ago

July 26, 2024

Dripp

Solana price is up 6% on Friday amid calls to sustain the uptrend eyeing a breach of the $200 resistance before August. Trading has been volatile this week following the debut of Ethereum ETFs’ trading in the US.

After retesting support at $165, SOL instantly changed direction tackling resistance at $170 before moving up to exchange at $178 during US business hours.

Various factors are expected to affect Solana’s movements including the futures market open interest as it recovers from a drastic drop earlier in the month.

Inflation is another key factor traders must keep an eye on, especially with the last few months hinting a consistent downtrend.

This has also prompted alls for the first rate cut. However, the Federal Reserve appears hawkish, possibly looking for further trend confirmation in the quest to achieve the 2% inflation goal.

SOL DeFi TVL Soars As Crypto Prices Recover

Solana’s competitive decentralised finance (DeFi) sector is back to making commendable strides following noticeable correction from May’s peak of $4.97 billion to a low of $4.02 billion in July.

At $5.34 billion, Solana’s Total Value Locked (TVL) grew by 15% in July, highlighting improving sentiment in the future of the smart contracts token.

As more peopled lock Solana in smart contracts within the ecosystem, chances of the price soaring to new highs significantly increase. This metric is used as a long-term trend indicator.

Additionally, the Solana futures open interest (OI) improved in the last 24 hours currently up 9% to $2.7 billion on Coinglass. The OI of an asset refers to the total number of outstanding derivative contracts yet to be settled.

Should the SOL OI continue to rise alongside the price, it will signal new money coming into the market and this is bullish.

Can Solana Price Tag $220 Before August?

The Solana price recovery to $178 from support at $165 was backed by a buy signal from the Moving Average Converge Divergence (MACD). A golden cross in the daily timeframe further reignited interest SOL’s trend revisal.

Solana Price Aims for $220 After 15% Surge In TVL In July — Solana price chart | Tradingview

Solana’s current position above the descending trend line drawn on the chart points to a bullish era with bulls yearning to push the price above $200 this weekend.

A previous SOL price prediction reveals that breaching the immediate $180 barrier could spur FOMO as traders append to their open buy orders. With volume increasing, Solana price would have the capacity to reach $220 before advancing to the previous all-time high of $260.

Frequently Asked Questions (FAQs)

TVL shows the dollar value of SOL tokens locked in smart contracts. Increasing DeFi TVL is a bullish signal as it reduces circulating supply or potential sell-side pressure.

Based on the increased TVL and Open interest, Solana can increase significantly in the next few days.

Solana holds 31% below its previous all-time high. It reached $206 in March but corrected to $120. With the price of SOL at $178, the token shows potential and could still be a good buy.

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