- Solana price is regaining momentum, holding above $205 with eyes on the $220 and $250 resistance zones.
- DeFi TVL on Solana surged $1.8 billion in a month to reach $11.7 billion, showing investor confidence.
- Active addresses dropped significantly, down more than 62% from June peaks, highlighting declining on-chain activity.
- Futures Open Interest (OI) has cooled from record highs, a sign of healthy market resets in bull runs.
- Technical indicators, including the RSI and EMAs, support a bullish short-term outlook for SOL.
Solana Price Gains Momentum Amid Market Optimism
Solana (SOL) price is showing renewed bullish signs after reclaiming support above $205 on Friday. The move mirrors a broader risk-on sentiment in the crypto market following key U.S. economic data, including Unemployment Rate and Nonfarm Payrolls (NFP) reports.
Following Bitcoin’s recovery above $112,000 support, Solana has also gained traction, strengthening its bullish setup. Traders are now eyeing the $220 and $250 resistance zones as the next targets for SOL.
DeFi TVL on Solana Near Record Highs
One of the biggest drivers of Solana’s current momentum is the growth in its Decentralized Finance (DeFi) ecosystem. According to DefiLlama data, Solana’s Total Value Locked (TVL) has grown from $9.86 billion on August 8 to $11.67 billion, an impressive $1.8 billion increase in just one month.
Also Read: Solana Price Strengthens as DeFi Development Corp Buys $22M in SOL
This surge reflects investors’ conviction in Solana’s long-term growth potential and supports the bullish narrative. However, while staking and TVL metrics remain strong, on-chain activity tells a different story.
Decline in Active Addresses Raises Questions
Despite the positive DeFi growth, Solana’s active addresses have fallen sharply. Current figures show 2.26 million active wallets, down over 62% from the 6 million peak in June.
This decline indicates reduced user engagement and transaction activity, which could weigh on network health in the long run. Active addresses are a crucial indicator of ecosystem adoption, and the current downtrend highlights a potential weakness.
Technical Analysis: SOL Eyes $220 and $250
From a technical perspective, Solana is well-positioned for further upside. The Relative Strength Index (RSI) is at 56, approaching overbought territory, while SOL trades above key support zones provided by the:
- 50-day EMA at $187
- 100-day EMA at $177
- 200-day EMA at $171
These moving averages confirm strong underlying bullish momentum.
Key resistance levels remain at $220 and $250, while the all-time high of $295 is the long-term target. However, traders should remain cautious of a potential pullback below $200, especially given September’s historically bearish track record in crypto markets and uncertainty surrounding the Federal Reserve’s interest rate decision.
Solana’s price forecast remains bullish in the short term, supported by technical strength and strong DeFi inflows. However, the decline in active addresses could signal underlying weaknesses in user adoption. As traders eye the $220 and $250 breakout levels, monitoring futures Open Interest, staking demand, and macroeconomic trends will be crucial in shaping SOL’s trajectory.
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