Solana is back in the spotlight as it reclaims the $180 mark for the first time since mid-February amid rising decentralized finance metrics.
Thanks to a solid technical setup and growing interest in its DeFi ecosystem, the price has increased 6% over the last day and 22% over the last week. Solana’s (SOL) open interest has also risen by 11.08%, as per Coinglass data. This implies that there are more traders entering the market with new contracts, which usually indicates growing investor confidence.
According to DeFiLlama data, Solana’s total value locked increased from $7.5 billion at the beginning of May to $9.6 billion at the time of writing. Leading the charge have been platforms like Marinade (up 56%), Jito (up 41%), and Raydium (up 78%). Additionally, weekly decentralized exchange volumes increased, rising from $18 billion the week before to $22 billion last week.
Chain activity remains strong. Revenues and transaction fees on Solana have been steadily climbing for four weeks, nearing three-month highs. With 65% of SOL staked, a combination of the demand from DeFi usage and the limited supply could support price growth.
But not every metric is positive. Solana’s overall stablecoin market capitalization dropped by 8% to $11.7 billion in the past seven days. At 8%, the funding rate indicates that traders are paying more to hold long positions, which is a sign of bullish sentiment but also one that frequently precedes short-term corrections.
Technicals confirm strength, though caution is warranted. SOL is trading significantly above all of the major moving averages, with the 10, 20, 50, 100, and 200-day EMAs and SMAs all displaying “buy” signals. This confirms a strong upward trend. However, overbought conditions are indicated by the relative strength index, which is at 71.
The Bollinger Bands are widening, and SOL is now trading close to the upper band. This typically comes before a period of correction or consolidation and indicates high volatility. Immediate resistance lies near $185, the top of the current band. A breakout above this could open the path to $200. On the downside, support is seen around $157 (20-day EMA) and $130, where the lower Bollinger band and previous consolidation zone align.
Looking ahead, bullish momentum could continue if SOL breaks above $185 with volume. A rejection here, however, may trigger a pullback to support levels. While SOL remains 39% below its all-time high of $295, growing institutional interest, possible ETF approval, and upcoming upgrades like Firedancer suggest that the road to $200 seems more likely if market conditions hold.
