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Solana (SOL) has increased from crossing 18 percent during the week, with the price sitting at approximately $171 today. A week like this has traders extremely excited. Solana is facing a decisive moment regarding the 50-week exponential moving average (EMA). It was at this EMA that Solana previously had a massive rally.
Late 2023 saw SOL make a massive 500 percent+ run through and over the 50-week EMA. It has been inching back to that level, and traders want to create a similar price explosion.
Last time Sol broke back over the 50-week EMA it led to a 515% climb from October 2023 to March 2024. Now, SOL is retaking important levels such as the 100-week and 200-week EMAs, and the 50-week EMA is in sight. If Solana can hold above this point, price targets of $250 to $350 by September 2025 are well within reach.
A bullish sign is the Relative Strength Index (RSI), which gauges market strength. In both the October rally and the current market situation, the RSI was below 50 before reversing higher, indicating possible momentum for additional gains.
Apart from being chart-looking capable enough technically, the project has also been boasting some big-time positive liquidity inflows. Last month itself, Solana received well over $165 billion in liquidity through bridges from some of the highest-valued blockchains such as Ethereum, Arbitrum, and BNB Chain, clearly showing increased trust in Solana’s scalability and abilities.
Solana’s superiority also reflects in the DeFi segment. Solana’s decentralized exchange activity, per DefiLlama, surpassed $3.32 billion in the previous 24 hours, accounting for close to 29 percent of the market. The performance puts Solana at the top of the DeFi participants, also giving a push to investor optimism.
Technically, SOL is making a move towards the $180 resistance level, which has been a hurdle in the past. The daily chart indicates Solana is testing the support of the daily 200-day moving average (DMA), a level that is a turning point that would either validate an extension of the ongoing rally or trigger a pullback.
If Solana can get through $181.10, we could enter a sustained rally, taking the price up toward $200, maybe attempting to challenge the February highs above $260. However, if the price cannot break through this resistance, we could experience a short-term correction to $160, which is an important support level.
Solana’s recent surge is supported by strong technical indicators and liquidity inflows, as well as an increase in DeFi dominance, which indicates a potential breakout. Traders and investors will be looking at the key levels of the 50-week EMA and $180 resistance to see if SOL can continue this bullish trend or if it will need to stutter for a little while before coming back higher.
The next few days will be critical in determining whether this rally shows the beginning of another explosive move higher for Solana.
