Solana (SOL) has experienced a notable price surge, jumping 22% in one week to trade around $180, the highest level since February 2025. The upward momentum is supported by a thriving DeFi ecosystem, with the Total Value Locked (TVL) in Solana-based DeFi projects increasing from $7.5 billion to $9.6 billion within the month.
High weekly decentralized exchange (DEX) volumes on Solana, reaching $22.4 billion, outpace competitors like Ethereum by a significant margin. On-chain metrics also indicate strong network health, with four consecutive weeks of increasing revenue and transaction fees.
Currently, 65% of SOL tokens are staked, reducing circulating supply and supporting price growth. The rise in open interest by over 11% signals added market confidence and new trading activity.
However, some bearish signals have emerged: the long/short ratio dropped to 0.86, showing a rise in short positions, and the Relative Strength Index (RSI) indicates overbought conditions at 71.83. These factors suggest potential for short-term consolidation or a price correction near resistance at $185.
Technical indicators show SOL trading above key moving averages, all signaling buy, while Bollinger Bands point to high volatility and possible price consolidation. Support levels are identified at $170, $157, and $130.
Moreover, a sharp rally on May 13 saw SOL’s price surge from $145.20 to $158.70 within just four hours, reflecting renewed buying momentum and increased trading volumes. This price action has energized the Solana ecosystem, sparking interest also in related tokens, including meme coins linked to the network.