SOL bulls are struggling to establish themselves in the market after the smart contract token’s upward trend ran out of steam. Solana’s price analysis and recovery from Monday’s plunge to $110 increases the likelihood of a further climb to $200, fueled by significant growth in the decentralized finance (DeFi) industry.
Solana Price Analysis: What the Future Holds as DeFi Txs Reach 36.2 Million
The current Solana price analysis hints at a continued uptrend despite the rejection at $160. Traders expect that the short-term support at $150 will come in handy and absorb the selling pressure, reversing the uptrend.
Defi Llama said that Solana's Defi activity is positive, with more than 36.2 million transactions coming from approximately 966,000 active addresses. In addition, the total locked value (TVL), which shows the sum of all value locked in smart contracts within the ecosystem, recovered from $3.8 billion on August 5 to $4.95 billion.
It is worth mentioning that rising TVL is usually associated with rising asset prices. Higher DeFi TVL indicates growing investor confidence in the price of SOL, indicating that more capital is currently invested in the ecosystem through staking. This can boost demand for SOL, pushing the price up to the coveted $200 mark.
In a previous Solana price prediction, CoinGape’s experts highlighted the impact of the approval of a spot Solana ETF before the end of the year. Two spot ETFs are in operation: a Bitcoin ETF since January and an Ethereum ETF since July.
Brazil’s Securities and Exchange Commission (SEC) made headlines on Thursday after it took a major step toward approving a spot Solana ETF. The SEC is expected to review several SOL ETF proposals and either approve or reject them. Approval could significantly increase the likelihood that Solana price analysis will extend its range to over $200, or even reach new all-time highs.
SOL price will resume rising
Solana’s price reinforced the bullish outlook by breaking out of resistance at $160. Additionally, short-term support could encourage traders to utilize the key dollar-cost averaging (DCA) strategy to target a new breakout at $180 before moving above $200.
Conservative traders may want to wait for a potential buy signal from the Moving Average Convergence Divergence (MACD) indicator. The blue MACD line must cross above the red signal line on the daily timeframe to validate the bullish thesis.
