DeFi
Solana Bulls charges over 7% as SolanaVM connects $68 billion in DeFi to a scalable network. $200 goal in focus
The bulls are on the move for Solana (SOL), as the high-performance blockchain makes major strides in bridging the gap with Ethereum’s decentralized finance (DeFi) ecosystem. SOL is up 7.8% in the last 24 hours to $155 at the time of writing, with a gain of over 12% in the last 7 days.
SOL Price Chart: CoinMarketCap
The driving force behind this upward dynamic is SolanaVM, a project aimed at transferring the immense $68 billion worth of Ethereum locked in DeFi applications to the Solana network. By creating a layer 2 blockchain compatible with the Ethereum Virtual Machine (EVM), SolanaVM allows developers to easily port their existing Ethereum dApps to Solana.
This could unlock considerable value for the Solana ecosystem by giving it access to the vast collection of DeFi protocols and applications currently dominated by Ethereum. Solana is at the top
With a circulating supply of 448 million SOL and a market capitalization of $69.5 billion, Solana currently ranks 5th among crypto assets. Over the past 24 hours, trading volume reached $2.28 billion.
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SOL technical analysis
On the weekly chart, SOL has been in an uptrend since early May after finding strong support at the $125 level. The last two weekly candles have been bullish, with the current candle making new highs after the price recovered from a brief break of ascending trendline support.
Moving to the daily time frame, SOL moved from an ascending trendline on April 30 to ending April on a bearish note. However, buyers intervened at the $120 level and pushed prices above trendline resistance with a series of bullish daily candles.
SOLUSD daily chart: TradingView
Today’s price action saw SOL open at $152.55, reach a low of $151.33, and it continues to climb to test resistance at $160 and recent highs. The daily RSI reading of 54 indicates bulls’ momentum over the past few days and ample room to challenge key resistance levels at the $160 level, the fair value gap above and the $168 range . Any retracement will likely find support at the ascending trendline.
The Path to $200 for Solana SOL
After surging more than 645% over the past year and 168% from January’s low of $78 to March’s high of $209, analysis sees SOL’s rally extending towards the psychological $200 level. Catalysts include the Bitcoin halving event in April, which reduced new supply, and Solana’s growing ecosystem of DeFi applications and bridges like SolanaVM.
With solutions like SolanaVM bringing Ethereum’s proven DeFi protocols to Solana’s scalable platform, SOL has a clear path to $200 and beyond. As the blockchain industry continues to evolve, projects combining the strengths of multiple networks are uniquely positioned to unlock immense value. Solana’s nascent bridge to Ethereum’s DeFi world has SOL bulls charging full steam ahead.