Rally

Solana

Defi

DeFi

Resistance

A bullish wave has traversed the crypto market on Thursday, spreading hope among investors whose holdings have been battered in this week’s sell-off. The <a href="https://coingape.com/markets/solana-price-analysis-will-market-sell-off-push-sol-back-to-100/" rel="noopener noreferrer nofollow">Solana price analysis</a> signals continuing gains into the weekend, underscoring a 10% surge in its value maintained for 24 hours.
SOL hovered at $136 during US business hours, contributing to the generally bullish outlook of the crypto market. The cumulative valuation stands at $2.31 trillion, up by 1.4% in the same period, according to data from <a rel="noopener noreferrer nofollow" href="https://www.coingecko.com/">CoinGecko.</a>
Bitcoin price also moved up after testing support at $56,500, as discussed in the special edition of the <a href="https://coingape.com/markets/top-3-price-prediction-as-microstrategys-bitcoin-identity-protocol-launches-btc-eth-sol-prices-to-rally/" rel="noopener noreferrer nofollow">top 3 price prediction</a>. The largest crypto could shape the market for more gains and reverse the bearish trend in April by reclaiming support above $60,000.
Bitcoin dodders at $58,500 at the time of writing after increasing by a modest 2% in the last 24 hours. <a href="https://coingape.com/markets/what-historical-trends-hint-for-ethereum-price-behavior-in-may/" rel="noopener noreferrer nofollow">Ethereum,</a> the second-largest crypto is also in the green but holding below support/resistance at $3,000.
<h2 class="p1" id="solana-price-begins-recovery">Solana Price Begins Recovery</h2>
The Relative Strength Index (RSI) backs the bullish move in the last 24 hours, which saw Solana touch resistance at $140. Its position at 54 highlights growing interest among traders to long SOL anticipating a recovery in May to close the gap to $200.
During the run-up in Q1, ignited by positive sentiment due to the launch of <a href="https://coingape.com/bitcoin-news-us-lawmakers-push-sec-chair-to-greenlight-btc-etf-options/" rel="noopener noreferrer nofollow">Bitcoin ETFs</a> in the US, the fifth-largest cryptocurrency peaked at $209. In the previous bull market in 2021, Solana reached historical highs of $260.
In the short term, traders will look out for higher support, preferably above the 50-day Exponential Moving Average (the line in red overlaying the chart) at $136.8.
Note that SOL’s position above the previous day’s open at $134.4 adds credibility to the bullish momentum.
Should the uptrend extend above the immediate $140 hurdle, confidence in the rally will increase. The next key level for the bulls to tackle will be $150 and $160. Resistance at $150 is marked by the 200-day EMA (the line in purple).
<figure id="attachment_194890" aria-describedby="caption-attachment-194890" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-194890" src="https://coingape.com/wp-content/uploads/2024/05/SOLUSD_2024-05-02_17-47-02.png" alt="Solana price chart | Tradingview" width="2694" height="1444" srcset="https://coingape.com/wp-content/uploads/2024/05/SOLUSD_2024-05-02_17-47-02.png 2694w, https://coingape.com/wp-content/uploads/2024/05/SOLUSD_2024-05-02_17-47-02-300x161.png 300w, https://coingape.com/wp-content/uploads/2024/05/SOLUSD_2024-05-02_17-47-02-1224x656.png 1224w, https://coingape.com/wp-content/uploads/2024/05/SOLUSD_2024-05-02_17-47-02-768x412.png 768w, https://coingape.com/wp-content/uploads/2024/05/SOLUSD_2024-05-02_17-47-02-1536x823.png 1536w, https://coingape.com/wp-content/uploads/2024/05/SOLUSD_2024-05-02_17-47-02-2048x1098.png 2048w, https://coingape.com/wp-content/uploads/2024/05/SOLUSD_2024-05-02_17-47-02-150x80.png 150w" sizes="(max-width: 2694px) 100vw, 2694px">
 <figcaption id="caption-attachment-194890" class="wp-caption-text">
 Solana price chart | Tradingview
 </figcaption>
</figure>
Based on the trading volume, which has soared to $4.2 billion, interest in SOL is growing among traders. If the trend continues, more gains can be anticipated in the next few days before encountering a stronger resistance.
<h2 class="p1" id="solana-s-defi-tvl-is-falling">Solana’s DeFi TVL Is Falling</h2>
<a rel="noopener noreferrer nofollow" href="https://defillama.com/chain/Solana">Defi Llama</a>, the platform monitoring the decentralized finance (DeFi) sector has revealed a significant drop in the value of <a href="https://coingape.com/markets/3-solana-rivals-to-turn-1-into-100-in-may/" rel="noopener noreferrer nofollow">Solana</a> locked-in smart contracts to $3.78 billion.
This drop follows a recent persistent surge to $4.89 billion, which bolstered the rally in January, February and March.
<figure id="attachment_194889" aria-describedby="caption-attachment-194889" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-194889" src="https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-02-at-17.56.02.png" alt="Solana DeFi TVL | Defi Llama" width="2316" height="1102" srcset="https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-02-at-17.56.02.png 2316w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-02-at-17.56.02-300x143.png 300w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-02-at-17.56.02-1224x582.png 1224w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-02-at-17.56.02-768x365.png 768w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-02-at-17.56.02-1536x731.png 1536w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-02-at-17.56.02-2048x974.png 2048w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-02-at-17.56.02-150x71.png 150w" sizes="(max-width: 2316px) 100vw, 2316px">
 <figcaption id="caption-attachment-194889" class="wp-caption-text">
 Solana DeFi TVL | Defi Llama
 </figcaption>
</figure>
A decrease in Total Value Locked (TVL) volume often indicates a long-term negative impact on the token. It’s important to remember that holders of SOL lock their tokens in smart contracts to participate in network security and earn additional coins.
When TVL increases, it suggests that investors have a long-term positive perspective and are confident that the coin’s value will appreciate. However, a downturn could obstruct future price growth as investors might prefer to keep their coins in a state ready for sale. This also escalates the potential pressure on the sell side.
The post <a href="https://coingape.com/markets/solana-price-analysis-will-sol-rally-to-200-in-may/" rel="noopener noreferrer nofollow">Solana Price Analysis: Will SOL Rally To $200 In May?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Solana Price Analysis: Will SOL Rally To $200 In May?

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