Solana (SOL) price surges by 20% in a week due to DEX volume explosion and protocol fees. Can this altcoin outperform Ethereum with a significant rebound? Explore the analysis and outlook of last year's leading blockchain.
Solana (SOL) has seen a 20% increase in the last seven days, driven by strong technical indicators and growing on-chain activity. Both its Ichimoku Cloud and BBTrend charts show bullish momentum, with an uptrend strength and increased volatility.
Simultaneously, Solana has taken the lead in the volumes on decentralized exchange platforms (DEX) and dominates the ranking of commissions from major DeFi protocols. With a recent golden cross on the EMA lines, SOL seems ready to test key resistance levels if this momentum persists.
Yesterday, the 4H Ichimoku Cloud of Solana exhibited a clearly bullish structure, with the price above the Tenkan-sen and Kijun-sen lines. However, as Bitcoin struggles to regain $84,000, SOL is losing momentum and has dropped below these Ichimoku lines.
On the 1-day chart, we see a rejection at the lower line of the Ichimoku, indicating that the bullish trend is not yet firmly established. Nevertheless, this rebound is promising for the coming weeks.
On the other hand, Solana’s BBTrend is currently at 7, sharply down from 15 two days ago. This significant decrease implies that the trend strength has recently diminished considerably.
Furthermore, the CMF has turned negative at -0.22 on the 4H chart, signaling a significant capital outflow and a fear of retracement in the coming days.
However, Solana firmly reestablishes its dominance in the decentralized exchanges (DEX) market, surpassing Ethereum and BNB in daily volumes.
In the last 24 hours, Solana has recorded $2.5 billion in DEX activity, a 14% increase over seven days. This growth outpaces that of Base (10%) and sharply contrasts with the declines seen in Ethereum (-3%) and BNB (-9%).
Even more impressively, Solana’s DEX volumes over seven days have surpassed the combined volumes of Base, BNB, and Arbitrum.
Beyond exchange volumes, Solana also excels in generating commissions for protocols. Among the top eight non-stable protocols ranked by fees, five are directly built on Solana: Pump, Axiom, Jupiter, Jito, and Meteora.
In particular, Pump stands out, generating $2.73 million in fees in the last 24 hours and $15 million in the past week.
The recent bounce and resilience of SOL in the past few days prove that the blockchain is far from dead. In fact, the chart comparing SOL to ETH has hit its all-time daily high on April 13. This suggests that Solana could become the second-largest cryptocurrency in the future, surpassing ETH.
Furthermore, Solana’s EMA lines have recently formed a golden cross, a bullish signal often indicating a new uptrend.
This crossover suggests that momentum is shifting towards buyers, with the potential for Solana’s price to soon test key resistance levels.
If the current trend persists, Solana could challenge resistance around the $136 area. A breakthrough at this level could pave the way for further advances, towards $147, $160, or even $180 if bullish pressure intensifies.
However, if the momentum weakens, Solana could face a pullback towards the support zone at $124. A break below this level could trigger deeper downward movements, potentially returning to $112 or even $95 to $88 if selling pressure accelerates.
Overall, Solana’s technical indicators and activity paint a particularly positive picture, positioning the cryptocurrency to continue its rebound if the bullish momentum persists. The upcoming weeks promise to be exciting for investors in Solana.
To seize this momentum, here’s a detailed guide to buying SOL on Weex:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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