In the past day, Solana's price has surged by 1.88% amid a broader market rally. This uptick allowed investors to reclaim the crucial 200-day moving average, reinforcing the currency's upward momentum.

Breakout for Solana: Analysts' Predictions

A recent evaluation by KongTrading, a recognized cryptocurrency analyst, indicates that a breakout for Solana (SOL) could be imminent if it surpasses its current wedge formation. The analysis highlights converging trend lines that have provided dynamic support and resistance for SOL since March 2024.

Rising TVL: What Does It Mean for Solana?

The daily chart for Solana reveals a lateral trend over the last seven months, with fluctuating highs and lows indicating mixed market dynamics. However, the rising Total Value Locked (TVL) suggests an optimistic outlook for the cryptocurrency.

Data from DeFiLlama shows that Solana’s TVL has steadily increased from $3.46 billion in April to $5.43 billion, representing a 57% growth. This development signals a resurgence of confidence in Solana’s ecosystem as more liquidity gets locked in decentralized finance protocols.

Geopolitical Factors and Their Impact on Solana

Currently, Solana’s price stands at around $143, with a market capitalization of $67.18 billion. Should tensions in the Middle East subside, the cryptocurrency could climb by as much as 28% towards wedge resistance at $183. This upward movement could bolster bullish sentiment by reestablishing daily exponential moving averages (EMAs) as support levels. However, if the market experiences a correction, Solana might retest the $120 mark, risking a 15% decline.

Trends in Solana’s market performance indicate promising opportunities for traders, underscored by the growing TVL and favorable technical indicators. Nonetheless, external factors such as geopolitical developments remain crucial for the future trajectory of SOL’s price.