Do Solana's fundamentals support bullish SOL predictions?
Fundamentally, Solana has performed well in network adoption recently, with a total value locked (TVL) across its ecosystem of 20.51 million SOL, the highest since January 2023.
Solana TVL performance chart. Source: Defi Llama Theoretically, as more assets are locked into DeFi platforms, the circulating supply of these tokens could decrease, leading to a possible increase in demand relative to supply. This scarcity effect can contribute to increased prices of locked tokens.
Analysis
Currently, SOL price trades at $135 with an intraday gain of 7.41% and reveals the third and final part of the three white soldiers pattern. Furthermore, over the past seven days, altcoin prices have increased by 35%, reflecting a significant reversal.
With Solana finding supporters like SBF who believe in the ecosystem from inside the prison, the general sentiment is extremely optimistic. Therefore, the possibility of SOL price exceeding the 150 USD mark is imminent.
Conversely, a break below the pennant's lower trendline risks invalidating the bullish setup entirely. If that happens, the price of SOL could fall as much as the previous bullish move, i.e. to $60.75, down about 45% from the current price.
