[The reason why Solana price exceeded $300 in April]
Solana has been hit by high volatility and selling pressure recently, down 10% from year-to-date highs of $210, and last traded around $188. Despite an attempt back towards $200, resistance at $205 led to a further decline to $175. Solana is currently growing 4.5% and has a market capitalization of $84 billion, making it the fourth largest cryptocurrency.
Solana’s DeFi total value locked (TVL) has grown exponentially since the fourth quarter of last year and currently stands at $4.78 billion. In 2024, TVL increased by 70%, reflecting a significant reduction in supply, with investors tending to lock up tokens to earn yield rather than rush to sell. This supports the positive sentiment in the market, with Solana price expected to reach new highs above $260.
Solana’s rapid development is due to its high speed, low cost and scalability, making it a strong competitor to Ethereum. In particular, meme coin projects like Dogwifhat (WIF) and BONK prefer using Solana. The Solana community of 2.5 million followers on X is active in supporting new projects, and Solana investment products currently attract $1.5 billion in assets under management (AUM).
The four-hour chart shows that Solana may be developing a bullish pennant pattern, with a return to highs of $210 expected in the near term. Although currently affected by the resistance level of $190, the MACD indicator is about to show an upward trend, indicating that Solana is expected to break through, and the target price is expected to reach $260 or even $300.
