Solana’s SOL Token Surges Amid Optimism for New All-Time Highs

San Francisco, CA — Solana’s native token, SOL, is experiencing a remarkable surge, rising 70% since it hit lows of $125 on June 22, as recent onchain data and a classic price pattern suggest potential for new all-time highs.

As of August 29, SOL had surged to around $215 but encountered resistance, dropping below $200 on September 1. It has since rebounded by 12%. Analysts are now wondering if SOL can replicate Ethereum’s successful rally and reach all-time highs above $300 in the near future.

The total value locked (TVL) on the Solana blockchain has seen a considerable increase, rising 57% to $12.27 billion as of Tuesday. This growth follows a slump to $7.8 billion on June 23. Solana’s TVL has also seen a 31% increase over the past month, driven by gains from decentralized applications like Raydium, Jupiter DEX, and others.

“The increase in TVL boosts liquidity and usability, positively impacting prices,” noted a crypto analyst familiar with the situation.

The growth in Solana’s TVL correlates with a rise in the market capitalization of memecoins, which are also experiencing significant increases. Many Solana-based tokens have shown gains of 15% to 30% this past month.

As trading activity on decentralized exchanges (DEXs) increases, the DEX volume attributed to memecoins has climbed by over 73%, amounting to $817.3 million on Tuesday.

“Solana’s price action is currently forming a V-shaped pattern,” an analyst remarked, highlighting that a breakout above the $200-$240 range could pave the way for a rally towards $252 and eventually to previous highs above $295.

Market sentiment is becoming increasingly bullish, with several analysts forecasting that SOL’s price could reach between $290 and $350, driven by ongoing institutional interest and adoption trends.

As technical indicators point to an improving market outlook for SOL, analysts advise caution but remain optimistic about future price movements. SOL’s course will depend significantly on overcoming the critical resistance level at $220.