Solana (SOL), the native cryptocurrency of the high-performance blockchain, drew investor attention on Tuesday amid sharp price swings. During U.S. trading hours, the price fluctuated between $157.23 and $162.89, with increased volatility sparked in part by House votes on major crypto legislation. Despite broader market uncertainty, SOL remains technically strong — supported by on-chain growth and rising interest in decentralized finance.
🔹 DeFi on Solana Expands — Investor Confidence Rises
Over the past three weeks, Solana has steadily recovered from $126 to its current price of approximately $164.6. This rally is driven by broader market recovery, ETF speculation, and most notably, a surge in Solana’s DeFi ecosystem.
According to data from DeFiLlama, Solana’s total value locked (TVL) in DeFi protocols jumped from $7.78 billion to $9.19 billion — an 18% increase. This growth signals rising capital allocation into Solana-based protocols, pointing to strengthening investor confidence and ecosystem vitality.
At the same time, network activity is surging. The number of active addresses on the network increased from 2.93 million to 3.34 million — a 14% uptick, indicating more users are engaging with Solana-powered applications.
🔹 Technical Outlook: Inverse Head-and-Shoulders Pattern Signals Bullish Setup
From a technical perspective, SOL has been consolidating between the horizontal levels of $157.80 and $168.28. This range forms an inverse head-and-shoulders pattern, a bullish reversal signal often seen at market bottoms.
A recent breakout above the $162.9 resistance level points to a potential move toward the next resistance at $168.28. If bulls successfully break through that barrier, momentum could carry SOL to $178.4 and potentially to the swing high of $187.7.
However, if selling pressure remains strong around the neckline, SOL may continue consolidating in the short term before confirming its next directional move.
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