On May 2, 2024, amidst a continuous decline in the cryptocurrency market, Solana, ranked as the world's 5th largest cryptocurrency, ended its bearish streak by surging significantly. According to CoinMarketCap data, Solana (SOL) saw a notable price increase of over 11% after experiencing 8 consecutive days of price drops.
Factors Driving the Increase in Solana (SOL) Price
Following the surge in SOL's price, the Total Value Locked (TVL) within the last 24 hours rose by nearly 5%. This price surge, combined with the increase in Open Interest (OI) and TVL, reflects the growing interest of investors and traders in SOL, indicating a potential shift in sentiment. Currently, SOL is trading close to $134, demonstrating an upward momentum of over 11% in the past day. While SOL faced a price decline of more than 9% in the last 7 days and a downside momentum of over 27% in the last 30 days.
Solana's Technical Analysis and Key Levels
Expert technical analysis suggests that SOL is displaying bullish signals due to various factors:
- The Relative Strength Index (RSI) of SOL on the daily timeframe is in the oversold zone and shows a bullish divergence, indicating a potential bull rally in the future.
- SOL's price surged by more than 60% after breaking a strong resistance level at around $125. Although it has not retested this breakout zone, a retest after a significant fall is seen as a positive sign.
- Despite the recent market decline, SOL found support from its 200-day Exponential Moving Average (EMA) and is currently trading above it, indicating a bullish trend.
Considering these factors, it is likely that in the upcoming days, SOL will reach the $155 level initially, and potentially even hit the $200 level if it maintains above that point.
In addition to Solana's fantastic performance on May 2, 2024, the crypto meme sector is also showing bullish signs, with leading meme coins such as PEPE and WIF experiencing substantial price surges of over 14%, and DOGE and SHIB exhibiting slight upside momentum.
