Solana retested key pennant support at the time of writing.
Rising metrics and TVL indicate growing strength in the ecosystem.
Solana (SOL) is showing signs of a bullish breakout after successfully testing key support. The altcoin has been consolidating within a bullish pennant pattern for the past five months.
In the past 24 hours, SOL has bounced off the bottom line of the pennant pattern, indicating increasing buying pressure at this support level.
This key support could act as the starting point for a potential bullish rally to the next resistance level around $153.
The $153 resistance level is key for SOL bulls as a clear breakout above this level could rekindle buying pressure and pave the way for a retest of the previous peaks.
Source: TradingView
Easing selling pressure gives bulls a boost
In addition to the aforementioned price fluctuations, DeFiLlama netflow data shows that seller activity has decreased significantly over the past 24 hours.
Thus, net flow has fallen from 9.58 million to -0.32 million at the time of writing, suggesting that selling pressure has eased.
Source: DeFiLlama
SOL DeFi comes into force
In addition to the decline in net flows, Solana’s Total Value Locked (TVL) has been trending upwards, indicating growing confidence in the DeFi ecosystem among network users.
This growth means that additional funding is being pumped into protocols based on Solana, which is a positive indicator of the network’s adoption.
Source: DefiLlama
Additionally, development activity aimed at improving the Solana network has increased in recent weeks, according to data from Santiment.
Historically, a surge in development activity has led to significant price increases, which is a positive signal for Solana bulls.
Source: Santiment
Read Solana (SOL) Price Prediction 2024-25
At the same time, we have seen a gradual increase in social volume overall, and increased social attention often translates into increased trading activity and price volatility.
Source: Santiment
A confluence of SOL’s technical and on-chain indicators points to a bullish outlook. If Solana can break above the bullish resistance levels, we may see further price gains.
