Solana price has seen a strong 15% increase since last Friday and is currently testing key supply levels around $160. The token’s price gain comes as volatility in the cryptocurrency market increases amid growing optimism.

Solana and other major cryptocurrencies have been on a roller coaster ride in recent weeks, and with volatility showing no signs of slowing down, uncertainty will continue in the weeks ahead.

DefiLlama’s key metric shows that Solana’s total value locked (TVL) has reached a new yearly high and is currently around $6 billion, the highest level since September 2022. The increase in TVL demonstrates confidence in the Solana ecosystem and decentralized finance (DeFi) products.

Investors and traders are watching the market closely, and Solana’s performance could serve as a key indicator of broader market sentiment. With Solana testing this key resistance level, the coming days will determine whether the coin continues its upward momentum or faces another round of volatility.

Solana Testing Key Resistance

Solana is on track for a 5% gain that could challenge local highs and potentially confirm a long-term uptrend. As the broader cryptocurrency market undergoes a shift, investors and traders are eagerly looking for signs that Solana is ready to break out to new highs.

Key data from DefiLlama shows that Solana’s total value locked (TVL) has reached a new yearly high of $6 billion. TVL measures the total value of assets deposited into a blockchain project and is a key indicator of user confidence and engagement.

Solana TVL Hits Multi-Year High of $6 Billion

The rise in TVL indicates that more users are locking funds into Solana’s decentralized applications, which shows growing trust in its ecosystem.

The increase in TVL further supports the bullish outlook many investors have for Solana. The platform’s expanding DeFi offerings and solid infrastructure make it a strong contender in the altcoin space. As Solana continues to march toward new highs, these fundamental data reinforce optimism about its future price action.

If a breakout above key resistance is confirmed, Solana could begin a sustained uptrend that would make it one of the best performing stocks on the market. Investors are closely watching to see if the current price action can translate into long-term gains.

Key levels to watch

Solana is currently trading at $155 after yesterday’s volatility. The price has successfully retested and is currently holding above the 200-day moving average (MA) at $151, indicating strong support for the asset. This level has been a key indicator for traders and holding this level is crucial to maintaining the current bullish momentum.

SOL Tests Key Supply After Breaking 1D 200 MA

To maintain bullish momentum, SOL must remain above this 200-day MA and break above the $160 level. Such a move could confirm the bullish trend and push Solana to test its yearly highs around $210. This would mark a significant uptrend, reflecting market optimism and increased confidence among traders and investors.

However, if the price fails to close above $160 and sustain above the 200-day SMA, the bullish momentum is likely to weaken. In such a case, a retracement is likely and the price could drop to lower demand levels around $140.

This correction will serve as a consolidation phase before further gains. Traders are closely watching these key levels as they will determine Solana’s next big move in the market.