Analysis: On-chain Activity and Candlestick Patterns Signal SOL May Break $300

BlockBeats News, May 26th, according to Cointelegraph's report, SOL's price surged 86% between April 7th and May 26th, following the overall altcoin market rally, while Bitcoin hit a new all-time high of over $111,000.

Solana network's TVL, from a multi-month low of $6.12 billion on April 7th, has grown over 54%, reaching $9.44 billion on May 26th, a nearly 20% increase in the past 30 days. According to DefiLlama data, the TVL growth was mainly driven by Raydium, which grew by 52% in one month. Other major decentralized applications such as Jupiter DEX, Jito liquidity mining, and Kamino lending grew by 12%, 25%, and 11%, respectively. Although Solana's token is ranked fifth by market capitalization, its network TVL ranks second among top Layer-1 blockchains, second only to Ethereum.

Since January, SOL's price trend has consistently shown a V-shaped pattern on the weekly chart. A V-shaped recovery refers to a bullish pattern where the asset's price experiences a significant decline followed by a sharp increase. When the price rises to the resistance level at the top of the V-shaped pattern (also known as the neckline), the V-shaped recovery is completed. SOL appears to be in a similar trend, with the current trading price below the supply-demand zone between $180 and $200. Breaking above this range will increase the price to the $252 neckline and complete the V-shaped pattern.

Furthermore, the next target would be to surpass the previous all-time high of $295, representing a 66% increase from the current price.