Solana Price Forecast: SOL Eyes 10% Gains as DEX Volume Surges Past Ethereum

Solana Price Forecast: SOL Eyes 10% Gains as DEX Volume Surges Past Ethereum

Disclosure: This article is for educational purposes only and does not constitute investment advice.

Solana Price Today: $178

Key Highlights

• Solana posts three consecutive days of gains, currently at $178.

• Weekly DEX volume on Solana reaches $15.733 billion, nearly double Ethereum's volume of $8.849 billion.

• Technical indicators suggest Solana could extend its rally to $193.98, its July peak.

Solana’s Recent Price Action: A Look at the Current Rally

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Solana (SOL) has shown strong recovery momentum over the past few days, bouncing back from Friday’s low of $160. Trading at $178.04 on Monday, SOL has gained over 10% since its weekend dip, largely driven by bullish on-chain data and broader market support.

The native token of the Solana blockchain has closed the gap toward its July peak of $193.98, positioning itself as one of the top performers among major altcoins. Given the increasing DEX activity and growing network engagement, Solana’s price could see further gains if technical support levels hold.

Solana Outperforms Ethereum in Weekly DEX Volume

Solana has achieved a major milestone in decentralized finance (DeFi) activity, surpassing Ethereum in weekly DEX trading volume for the first time. According to DeFiLlama, Solana’s DEX volume reached $15.733 billion last week, compared to Ethereum’s $8.849 billion—a margin of 77.79%.

The higher DEX volume reflects increased demand and usage of the Solana network, demonstrating its capacity to handle large transaction volumes more efficiently than its primary competitor, Ethereum. This surge in volume not only highlights Solana's growing relevance but also suggests that it is increasingly favored by traders and liquidity providers.

Technical Analysis: Can Solana Retest $193.98?

The recent rally in Solana's price is supported by strong technical indicators:

1. Relative Strength Index (RSI): Currently at 66.42, the RSI is approaching the overbought zone (70), indicating strong bullish momentum but also suggesting that caution may be warranted as it nears overbought conditions.

2. MACD (Moving Average Convergence Divergence): The MACD indicator shows positive momentum, with green histogram bars above the neutral line, signaling a potential continuation of the uptrend.

3. Support Levels: On the downside, SOL could find support at the Fair Value Gap (FVG) upper boundary at $160.99 and the 10-day Exponential Moving Average (EMA) at $154.16, which serve as key support levels.

If Solana continues to hold above the $160 support zone and sustains its current momentum, the next target is $193.98—its July high. A break above this level could open the door to even higher price targets, setting a bullish tone for the coming weeks.

Factors Driving Solana’s Recent Rally

1. Increased On-Chain Activity: Solana’s strong performance in DEX trading volume suggests growing adoption and higher transaction throughput, reinforcing its status as a leading Layer-1 blockchain.

2. Competitive Edge Over Ethereum: Solana’s ability to process transactions faster and at lower costs than Ethereum has been a key driver of its increasing market share in the DeFi space.

3. Institutional Interest: Solana has continued to attract institutional interest, with major funds diversifying into SOL, enhancing the token's liquidity and market resilience.

Potential Risks to Solana’s Uptrend

While the bullish case for Solana remains strong, a few factors could pose risks:

• Market Volatility: Broader crypto market volatility, driven by macroeconomic factors or sudden regulatory developments, could impact Solana’s price action.

• Network Issues: Although Solana has improved its network stability, past outages remain a concern for investors, potentially impacting confidence in sustained growth.

• Overbought Conditions: If the RSI reaches overbought levels, a short-term correction may occur before further gains can be realized.

Conclusion

Solana’s recent performance has been impressive, marked by significant DEX volume gains and bullish price action. The transition above $160 and the positive on-chain metrics suggest that the altcoin could retest its July peak of $193.98. However, traders should be mindful of potential pullbacks due to overbought conditions and market-wide volatility.