Key Points:
- Solana jumps 35% after Monday’s fall.
- DeFi value for Solana up by $1 billion.
- Trend reversal might threaten the uptrend.
Solana’s price has bounced back after a big fall on Monday. The price dropped to $109 but quickly rose to $150. This 35% rise has excited traders and investors. Many now hope Solana might reach $200 soon.
DeFi Growth Boosts Solana
A big reason for Solana’s fast recovery is the rise in its DeFi value. DeFi value shows the total worth of projects on Solana. From August 5 to August 8, Solana’s DeFi value went up from $3.8 billion to $4.81 billion. This $1 billion increase shows growing trust among investors.
A higher DeFi value means more demand for Solana’s projects. This increase supports Solana’s price rise. It suggests Solana could keep climbing toward $200.
Watching Solana’s Price Signals
Even with the rise, traders need to watch some price signals. The Relative Strength Index (RSI) is at 43. This shows some buying strength, but it needs to go above 50 for stronger confidence. Key targets for Solana’s price are $160, $180, and $200.
Solana’s price is also above the important 200-day Moving Average, which helps support the rise. But there might be a trend reversal soon. The 20-day Moving Average might cross below the 50-day Moving Average. This is usually a bearish sign and could lead to a price drop.
If the trend reversal happens, traders might start selling Solana. They might aim for support levels at $140, $130, and $120. So, while the outlook is good, traders should be careful because of mixed price signals.
Market Stability and Future Outlook
The futures market shows stability, which is good for Solana. According to Coinglass data, forced sell-offs have dropped a lot. They went from over $1 billion on August 5 to $120 million on August 7. Fewer forced sell-offs mean a more stable market. This can help Solana’s rise continue. As Solana aims for $200, the overall market feeling is positive. This is helped by the quick recovery and big jump in DeFi value. But traders should stay alert for any signs of a reversal. The next few days will be crucial to see if Solana can keep its rise and reach new highs.
