Solana's price recently saw a 16.8% decline from its yearly high, reflecting a pause in crypto momentum. Despite this correction, technical and fundamental signals suggest long-term upside potential. Between descending wedge, regulatory support and growth catalysts, SOL maintains hopes of a new push towards new heights.
Solana, strong fundamentals and a leading position in crypto
Who could have predicted Solana's meteoric rise? Today, this blockchain has established itself as a serious competitor to Ethereum, displaying remarkable performance. Fifth largest cryptocurrency with a capitalization of $105 billion, Solana is consolidating its position as a key player in the sector.
At $220, its price reflects a recent correction while demonstrating a technical consolidation phase. Its robust ecosystem, supported by over $30 billion in stablecoins and a total value locked (TVL) of $9.12 billion according to DeFi Llama, strengthens its resilience.
Solana is also challenging Ethereum with its growing dominance in the decentralized exchange (DEX) market. In just one week, volumes on its platforms like Raydium and Orca reached $29.7 billion, far surpassing Ethereum's $21 billion.
Furthermore, Solana shines in the field of decentralized infrastructure (DePIN), thanks to innovative projects. HiveMapper, for example, aims to rival Google Maps, having already mapped 17 million kilometers of roads globally. For its part, Helium is reinventing wireless networks by focusing on a decentralized model, offering new perspectives for the industry.
Finally, Solana successfully exploits the crypto meme phenomenon, with a total capitalization exceeding $19 billion. Projects like Dogwifhat and Bonk embody this dynamic, attracting a diverse user base.
A bullish potential to watch
Solana's technical analysis reveals particularly encouraging signals. After peaking at $264.40 on November 22, the crypto recently retested a crucial support level at $205, forming a cup and handle pattern, a configuration traditionally interpreted as bullish.
Persistence above the 50-day moving average confirms the positive momentum. The falling wedge pattern suggests a high probability of a bullish breakout in the coming weeks, with potential targets of $264 initially and then $400.
The political horizon could also play a catalytic role. Anticipation of regulatory easing under the Trump administration and the prospect of a spot ETF are fueling optimism. The influx of institutional capital, as observed recently with Ethereum, could significantly boost the valuation.
In short, Solana finds itself at a technical and fundamental crossroads. Its strong performance in the DEX market, growing role in decentralized infrastructure, and positive technical signals position it for a bullish recovery. With a descending wedge in play and favorable regulatory expectations, Solana could well become one of the best performing cryptos in the months to come.
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