- At press time, Solana has retested a key pennant support.
- Key metrics and rising TVL indicated growing strength of the ecosystem.
Solana (SOL) is showing signs of a possible bullish breakout after a successful test of key support. The altcoin has been consolidating within a bullish pennant pattern for the past five months.
Over the past 24 hours, SOL has bounced off the lower line of the pennant pattern, indicating increased buying pressure at this support level.
This key support could serve as a launching pad for a potential bullish rally to the next resistance level around $153.
The $153 resistance level is of importance for SOL bulls, and a clear break above this level may result in renewed buying pressure and pave the way for a retest of previous highs.
Source: TradingView
Less selling pressure boosts bulls
In addition to the price movement mentioned above, DeFiLlama’s Net Flow data indicated that the number of sellers has decreased significantly over the past 24 hours.
Accordingly, net inflows fell from 9.58 million to -0.32 million at the time of writing, indicating less selling pressure.
Source: DeFiLlama
SOL DeFi shows its muscles
In addition to the reduced net flow, Solana’s Total Value Locked (TVL) is also on an increasing trajectory, indicating growing confidence among network users in the DeFi ecosystem.
The growth implied that additional funds were deposited into Solana-based protocols, which is a positive indicator of network adoption.
Source: DefiLlama
In addition, development activities to improve the Solana network have increased in recent weeks, according to Santiment data.
Historically, this increase in development activity has led to a sharp increase in price. This is a positive signal for Solana bulls.
Source: Santiment
Read Solanas (SOL) Price Prediction 2024-25
At the same time, overall social volume showed a gradual increase. This growing social attention often leads to increased trading activity and price movements.
Source: Santiment
The confluence of SOL’s technical and on-chain metrics painted a bullish picture. If Solana breaks the bullish resistance level, further price gains could be expected.
