Solana’s cryptocurrency experienced a significant surge, breaking a month-long price decline on Tuesday as shifting exchange-traded fund dynamics converged with strong technical indicators.
The digital asset, known as SOL, jumped 9.56% in a 24-hour period to trade at $138.59, marking a notable recovery after opening the session at $126.47.
This rally came as daily trading volume for SOL reached $6.11 billion, surpassing its 30-day average by 4.57% and signaling renewed investor interest.
The upward movement was largely attributed to the conclusion of a 21-day streak of inflows into spot Solana ETFs. According to reports, this created temporary selling pressure before attracting new buyers.
The Relative Strength Index (RSI), a key technical momentum indicator, also showed a bullish divergence. This suggested the asset was oversold and hinted at an imminent upward reversal.
The recent price action stands in stark contrast to the preceding 30 days, during which Solana had seen its value drop by 21.93%.
Despite Tuesday’s gains, SOL remains 52.77% below its all-time high of $293.41. Solana’s market capitalization now stands at $77.58 billion.
On-chain metrics provided further support for the rally. Daily transactions remained stable above 50 million and the number of active holders increased to 1.2 million.
The total value locked (TVL) within the Solana ecosystem has surpassed $5 billion. This is driven by its adoption in decentralized finance (DeFi) applications.
Derivative markets reflected a moderate bullish sentiment, with positive funding rates in perpetual contracts and stable open interest around $440 million.
Analysts pointed to $126 as a crucial support level for SOL, with a potential target resistance at $150 if the momentum continues.
The platform’s lower transaction fees compared to rivals like Ethereum continue to attract trading volume and users.