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Solana (<a href="https://cointelegraph.com/solana-price-index">SOL</a>) price continues to rally, rising by over 6.5% in the past 24 hours and reaching an intraday high of $183 on July 26. The recent gains take cues from an uptick in tokens within the Solana ecosystem, increasing network activity and a strengthening market setup.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-07/1168f8af-bea2-43e5-818e-c48dec3be753.png" alt="Why is Solana (SOL) price up today?">
 <figcaption style="text-align: center;">
 SOL/USD daily chart. Source: <a href="https://www.tradingview.com/x/dAJLLDTF/" target="_blank" rel="noopener nofollow">TradingView</a>
 </figcaption>
</figure>
Let’s have a close look at the factors driving Solana price up today.
<h2 id="recovery-in-solana-based-tokens-backs-sol-price">Recovery in Solana-based tokens backs SOL price</h2>
Multiple tokens in the <a href="https://cointelegraph.com/learn/solana-sol-ecosystem-overview">Solana ecosystem</a> have been recovering over the last 24 hours, mirroring a recovery across the broader crypto market.
Data from CoinMarketCap reveals that the total market capitalization of cryptocurrencies built on the <a href="https://cointelegraph.com/news/what-is-solana-and-how-does-it-work#:~:text=Solana%20is%20a%20highly%20functional,%2Dspeed%20layer%2D1%20blockchain.">Solana</a> blockchain has seen significant gains in the last seven days, from $220.93 billion on July 19 to $234.70 billion on July 26.
Jupiter (<a href="https://cointelegraph.com/jupiter-price-index#:~:text=%240.7582&amp;text=This%20chart%20shows%20the%20price%20only%20in%20USD.">JUP</a>) posted the most daily gains, rising 10.72% over the 24 hours and 4.28% in the last seven days. Pyth Network (PYTH) followed with 8.65% over the last 24 hours and 10.47% over the last seven days.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-07/41f2f575-fb3f-4cfe-8620-382f6d821552.png" alt="Why is Solana (SOL) price up today?">
 <figcaption style="text-align: center;">
 Large-cap tokens in the Solana ecosystem. Source: CoinMarketCap
 </figcaption>
</figure>
The largest Solana-based meme token by market capitalization — <a href="https://cointelegraph.com/news/dogwifhat-price-to-10-arthur-hayes">Dogwifhat</a> (WIF) — saw a 4.46% price ascent on the day and a 4.48% increase in a week, bringing its market cap to $2.62 billion. 
The bullishness displayed by Solana-based tokens reflects a broader investor sentiment toward the ecosystem, driven by <a href="https://cointelegraph.com/news/crypto-airdrops-coingecko-all-time-highs-report">high airdrop activity</a> that has seen <a href="https://cointelegraph.com/news/solana-sol-price-encounters-resistance-near-190-here-is-why">SOL price</a> rally more than 1,750% since Jan. 1, 2023, when it traded below $10.
<h2 id="sol-price-boosted-by-high-network-activity-on-solana">SOL price boosted by high network activity on Solana</h2>
SOL’s price surge on July 26 is backed by high network growth, evidenced by increased network activity and <a href="https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter#:~:text=Other%20than%20market%20capitalization%2C%20trading,in%20a%20single%20DeFi%20project.">total value locked</a> (TVL).
Data from DefiLlama shows that the TVL on Solana has jumped more than 8.8% from $4.9 billion to $5.42 billion, over the last seven days. 
Meanwhile, volume on the network has jumped approximately 19.5% from $1.63 billion to $1.94 billion over the last 24 hours. 
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-07/7e20a9e8-bca2-420c-ae0c-72842df45a06.png" alt="Why is Solana (SOL) price up today?">
 <figcaption style="text-align: center;">
 Transaction volume and TVL on Solana. Source: DefiLlama
 </figcaption>
</figure>
Increased TVL and high volume points to increasing network activity, suggesting more user engagement and development activity on the blockchain. 
Additional data from DappRadar shows a 15% increase in total unique active wallets on the Solana blockchain over the past week. The DeFi TVL on the network also jumped by 9.5% over the same period, fueled by TVL increases on Marinade Finance, Solend, Tulip Protocol and Quarry. 
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-07/806e3b50-cc1c-4a09-8112-5addc15bc55e.png" alt="Why is Solana (SOL) price up today?">
 <figcaption style="text-align: center;">
 Layer-1 blockchains ranked by 7-day DApp volumes. Source: DappRadar
 </figcaption>
</figure>
Increased network activity leads to increased demand for SOL, driving up its price.
Related: <a href="https://cointelegraph.com/news/price-analysis-7-26-btc-eth-bnb-sol-xrp-doge-ton-ada-avax-shib">Price analysis 7/26: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB</a>
<h2 id="is-sol-s-cup-and-handle-pattern-a-sign-of-things-to-come">Is SOL’s cup-and-handle pattern a sign of things to come?</h2>
From a technical perspective, the SOL/USD pair has been forming a <a href="https://cointelegraph.com/news/xrp-price-rally-stalls-near-key-level-that-last-time-triggered-a-65-crash">cup-and-handle</a> chart pattern on its daily time frame since May 20.
A cup and handle setup is a technical formation that appears when the price falls initially, followed by a steady recovery in what appears to be a U-shaped recovery, which forms the cup. Meanwhile, the recovery leads to a pullback move, wherein the price trends lower inside a descending channel forming the handle.
The pattern is resolved when the price breaks above the handle, rallying to an approximately equal size to the prior decline. The SOL/USD chart below illustrates a similar bullish technical setup.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-07/ff92697f-7756-4030-ab85-c44ead405485.png" alt="Why is Solana (SOL) price up today?">
 <figcaption style="text-align: center;">
 SOL/USD daily chart. Source: TradingView
 </figcaption>
</figure>
Note that SOL now trades higher inside the handle range and is pursuing a recovery toward the neckline resistance at $186. Afterward, a decisive daily candlestick close above the neckline could lead the SOL price to $252, up 35% from the current levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Why is Solana (SOL) price up today?

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