- Solana has jumped by more than 620% from the lowest point this year.
- The coin has now formed a bullish pennant pattern on the daily chart.
- Key parts of the ecosystem like Solend and Orca are doing well.
Solana price has stalled recently as the recent rally lost steam. The coin was trading at $58.45 on Wednesday, a few points below the year-to-date high of $68.07. It has been one of the best-performing cryptocurrencies this year as it soared from a low of $8.10.
Solend is doing well
Solana has done well, helped by the strong growth of its ecosystem. According to DeFi Llama, the network has over 164k addresses, making it one of the biggest chains in the industry.
At the same time, the Total Value Locked (TVL) in its ecosystem has jumped by 140% in the past 30 days to over $633 million. The amount of stables in the ecosystem stands at over $1.5 billion, making it the eighth-biggest chain in the world.
A closer look at its ecosystem shows that some of its ecosystem is thriving. For example, Orca, the biggest DEX in the platform, has seen its volume and transactions soar. Orca has a total value locked of over $82 million and the daily transaction volume has roared.
Solend, a lending protocol in the ecosystem is doing well as the TVL soared to more than $130 million. SLEND, Solend’s token, has soared by more than 315% from the lowest level in 2023 and is now hovering near the highest point this year.
Other dApps in its ecosystem like Marinade Finance, Raydium, Lido, and Drift have done spectacularly well in the past few months.
Solana’s recovery is remarkable because it was widely seen as a fallen angel in 2022 as FTX and Alameda Research imploded. The two companies held millions of Solana tokens and had a lot of influence in the ecosystem. Therefore, there was a fear that it would crash as FTX Estate sold.
Solana price has jumped for several other reasons. For example, it has risen because of the broader crypto rally that has seen it rise to over $38,000. There is also a rising hope that the Federal Reserve will start slashing rates.
Solana price forecast
The daily chart shows that the SOL price has been in a strong bullish trend in the past few months. It has jumped above all moving averages. At the same time, Solana has formed a bullish pennant pattern, which is one of the most popular bullish sign.
A closer look shows that the coin’s volume has been moving downwards while the Relative Strength Index (RSI) has formed a bearish divergence pattern. Therefore, Solana price will likely consolidate for now and then have a bullish breakout. If this happens, the next point to watch will be at $70.
