Key Takeaways:
Solana’s 15% surge and potential close above the 50-week EMA signal strong bullish momentum, which previously led to a 515% rally in 2024.
The $120 million in liquidity bridged to Solana reflects growing network confidence.
Solana (SOL) price gained 18% this week, signaling rising bullish momentum. The altcoin is approaching a pivotal point, with a potential close above the 50-week exponential moving average (EMA), a level that has historically catalyzed significant rallies.
In March, SOL dipped below the 50-week EMA and briefly dropped under $100 on April 7. Since then, Solana has staged a strong recovery, reclaiming key EMA levels (100W and 200W), with the 50-week EMA (blue line) now in focus.
Historical patterns reinforce a bullish outlook. In October 2023, SOL breached the 50- and 100-week EMAs, consolidating above these levels before rallying 515% by March 2024.
Notably, the relative strength index (RSI) was below 50 during both periods, mirroring the current setup, with the indicator rebounding above 50 after the 50-week EMA flipped to support. If the 50-week moving average holds, the price targets for SOL could be between $250 and $350 by September 2025.
The daily chart bolsters this narrative. Solana recently closed above the 200-day EMA, with immediate resistance at $180. A break above this level in the coming weeks and turning the range into a support level could potentially ignite a parabolic rally by Q3 2025.
Related: Solana lacks ‘convincing signs’ of besting Ethereum: Sygnum
Users bridge $165 million to Solana
In the last 30 days, over $165 million in liquidity has been bridged to Solana from other blockchains, reflecting growing confidence in the network. Ethereum led with $80.4 million in transfers, followed by Arbitrum with $44 million, per Debridge data. Base, BNB Chain, and Sonic contributed $20 million, $8 million, and $6 million, respectively.
Similarly, data from DefiLlama indicates that Solana posted the highest decentralized exchange (DEX) volumes, 3.32 billion, over the past 24 hours. The network currently holds 28.99% of the market share among other chains.
With a 28.99% market share among competing chains, Solana’s dominance in DeFi activity highlights its scalability and user adoption.
Currently, substantial liquidity inflows and strong DEX volumes position Solana for a sustained price breakout.
Related: Chance of Bitcoin price highs above $110K in May increasing — Here’s why
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
