Solana (SOL) has captured the attention of investors this week with an impressive 18% price surge, showcasing a significant rise in bullish momentum. The altcoin is on the verge of a pivotal development, with the possibility of closing above the 50-week exponential moving average (EMA)—a key level that has historically fueled major price rallies.
In March, Solana experienced a dip below the 50-week EMA, briefly dropping under $100. However, since then, the asset has mounted a formidable recovery, reclaiming crucial EMA levels (100-week and 200-week), with the spotlight now on the 50-week EMA (represented by the blue line).
Historical trends support a bullish outlook for Solana. In October 2023, the asset breached both the 50-week and 100-week EMAs, consolidating above these levels before embarking on a staggering 515% rally by March 2024. Notably, during both instances, the relative strength index (RSI) was recorded below 50. Currently, the RSI is rebounding above 50 after the 50-week EMA has effectively flipped to a support level.
If the 50-week moving average maintains its position, we might see Solana’s price targets soar between $250 and $350 by September 2025.
The daily chart supports this bullish narrative further. Solana has recently closed above the 200-day EMA, facing immediate resistance at $180. A breakthrough above this resistance in the coming weeks and the establishment of a support level could potentially trigger a parabolic rally by Q3 2025.
Liquidity Inflows Indicate Growing Confidence
Over the past 30 days, over $165 million in liquidity has been bridged to Solana from various blockchain networks, illustrating escalating confidence in the platform. Ethereum led the charge with $80.4 million in transfers, followed by Arbitrum with $44 million, according to Debridge data.
Additional insights from DefiLlama indicate that Solana has recorded the highest decentralized exchange (DEX) volumes—3.32 billion—in the past 24 hours. The network currently holds approximately 28.99% of the market share amongst competing chains, underscoring its dominance in decentralized finance (DeFi) activities.
With substantial liquidity inflows and robust DEX volumes, Solana is strategically positioned for a sustained price breakout. As investors remain attuned to the platform’s developments, the potential for growth looks promising.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
