Solana Surges 16% in a Week, Reclaims DEX Leadership, and Outperforms Ethereum
In the face of global market volatility, Solana (SOL) has demonstrated remarkable strength, surging 16% over the past week. This notable price movement has allowed SOL to reclaim its position as the leading blockchain for decentralized exchange (DEX) activity, surpassing Ethereum once again.
On Thursday, SOL rose by more than 4%, while the broader CoinDesk 20 index saw a 3% increase. Technical analysis shows that Solana’s price has found strong support within the $125 to $127 range, with several attempts to push lower consistently rejected. The $133.50-$133.60 resistance level remains a key challenge for the token’s further price movement.
Blockchain data shows significant accumulation around the $129.79 price point, with over 32 million SOL, or more than 5% of the total supply, accumulating in this region. This level now serves as a crucial pivot for Solana’s price action.
Key Technical Observations
- Support and Resistance: Solana’s price has found solid footing between $125 and $127, creating a robust support zone. Resistance at $133.50-$133.60 continues to cap upward movement, with traders eyeing this range as a critical hurdle.
- Price Bounce and Recovery: After dipping to $123.64 on April 16, SOL quickly rebounded by 4.5%, rising to $135.57. This recovery confirms a strong upward momentum and suggests that the market remains bullish.
- Spot Solana ETFs Boost Institutional Sentiment: The recent launch of Canada’s first spot Solana ETFs on April 16, backed by asset managers such as 3iQ, Purpose, Evolve, and CI, has contributed to a surge in institutional interest in Solana. This is expected to further fuel SOL’s adoption and growth.
- Dominance in DEX Activity: With a 16% weekly price gain, Solana has reclaimed the top spot in DEX activity, surpassing Ethereum. Additionally, the total value locked (TVL) in Solana’s ecosystem has surged by 12%, reaching $7.08 billion.
- Strong Volume and Accumulation: On April 16, SOL experienced a significant uptick in volume, with over 3 million SOL traded as the price broke through the $130 resistance level. This suggests a healthy accumulation trend as the market supports higher prices.
- Fibonacci Analysis: The recent rally has recaptured the critical 61.8% Fibonacci retracement level, following the April 14 high of $136.01 to the April 16 low, indicating a potential continuation of the bullish trend.
- Short-Term Correction: After peaking at $134.11, SOL saw a brief correction, dropping 2.5% to $130.81 in the final 100 minutes of trading. This sell-off was marked by a sharp increase in volume, signaling increased volatility and liquidation pressure.
- Support Breakdown at $132: A breakdown at the $132.00 support level triggered cascading liquidations, further pushing the price below the 78.6% Fibonacci retracement level. If bearish momentum persists, SOL may revisit the $125-$127 support zone.
