Solana’s Recent Milestones
The SOL price surged past the $100 milestone on Feb. 8, and recent developments in Solana’s Total Value Locked (TVL) suggest the potential for further gains.
Solana witnessed significant growth within its decentralized finance (DeFi) ecosystem over the past week, even causing a temporary network outage. On-chain data analysis indicates that rapid capital inflows and an increasing network participation rate could propel SOL prices higher in the coming days.
Solana’s Price Movement
Solana faced controversy and volatility in recent weeks. After a strong finish in January with a 35% upswing from $79 to $105 between Jan. 23 and Jan. 31, SOL prices experienced negative sentiment when the Solana blockchain network suffered a five-hour outage on Feb. 6.
Despite the disruption, bullish SOL holders maintained their positions, and on Feb. 8, SOL price surged to $105 at noon Eastern time.
On-Chain Data Analysis
On-chain data trends show that the 33.6% price rally over the last 16 trading days may be attributed to Solana’s DeFi ecosystem attracting millions of dollars in capital inflows.
Solana TVL Reaches 20-Month Peak
On Feb. 8, TVL on Solana’s DeFi ecosystem surpassed the $1.8 billion mark for the first time since June 2022. According to DefiLlama data, it has grown by $500 million in the last 16 days since Jan. 23.
This milestone is attributed to projects built on the Solana layer-1 network, with Jupiter (JUP), Jito, Kamino, and Blazestake gaining attention and significant capital inflows.
When a layer-1 blockchain network experiences an increase in TVL, as seen on Solana, it indicates growing investor interest in its native projects. As users engage in network transactions, it stimulates market demand for the native SOL token, ultimately driving up the price.
SOL Price Forecast
Based on the analyzed data trends, the organic $500 million increase in TVL played a pivotal role in SOL’s 33.6% price rally between Jan. 23 and Feb. 8. With TVL still on the rise, SOL may be poised for further price gains, potentially retesting the coveted $120 territory in the days ahead.
Key resistance points include the upper Bollinger band technical indicator suggesting a potential sell-wall around the previous local top at $105. A decisive breakout above this level could pave the way for an audacious move toward the $120 territory. Conversely, bears could invalidate this prediction with a downswing below $80. However, the lower Bollinger band indicator points to a support buy-wall at $83, potentially triggering another rebound phase if held by bullish forces.