Solana ( SOL ) surged 20% in the past week – Has the recovery really begun?

Solana (SOL) has recorded an impressive growth of 20% in the past week, driven by positive technical signals and a resurgence in on-chain activity. Analytical tools such as Ichimoku Cloud and BBTrend are indicating a distinct upward trend, with both trend strength and volatility showing strong upward movement.

At the same time, Solana is gradually solidifying its leading position in the decentralized market as it climbs in the rankings for trading volume on DEXs and dominates protocol fees on many top DeFi applications. Notably, a new bullish cross forming on the moving averages (EMA) indicates that SOL may be approaching a test of important resistance levels — if the upward momentum continues to be sustained in the upcoming sessions.

The technical indicators of Solana show a clear upward trend

The Ichimoku Cloud chart for Solana is currently painting an optimistic technical picture, with a clear bullish structure as the price remains stable above both the Tenkan-sen and Kijun-sen lines. This reflects strong momentum in both the short and medium term, indicating that the bulls are in control.

The cloud in front is blue and expanding steadily — a typical signal for the continuation of an upward trend. The significant distance between the price and the cloud also implies that there is still room for growth before any significant signs of weakness appear.

The Ichimoku Cloud indicator on the SOL/USDT 4-hour chart | Source: TradingViewThe Chikou Span is completely above the cloud and the candles, confirming that the current uptrend is sustainable. As long as the price remains above the Kijun-sen line and the cloud continues to act as support, the dominant trend remains clearly upward.

Meanwhile, the BBTrend of Solana – a tool for measuring trend strength based on the deviation of price from the average range – currently stands at 16.89. This figure has seen a slight adjustment from the peak of 17.54 recorded yesterday, but it still shows a strong increase compared to the 1.88 mark just two days prior. This surge indicates that the volatility range and trend intensity have clearly expanded in recent times.

! sol-tang-giaSOL BBTrend Indicator | Source: TradingViewTypically, BBTrend values above 10 indicate that the market is in a strong trend, while lower levels reflect a tug of war in a narrow range or a state of consolidation. The fact that this indicator remains in the highlands shows that Solana is still in the mainstream bullish wave. If BBTrend continues to hold firm or rises again, the bullish momentum is likely to be further consolidated; Conversely, a gradual decline of this indicator may be an early signal of an upcoming period of consolidation or a slight correction.

Solana confirms its dominance in DEX, far surpassing Ethereum and BNB in trading volume

Solana is gradually solidifying its leading position in the field of decentralized trading (DEX), officially surpassing both Ethereum and BNB in daily trading volume.

In just the past 24 hours, DEX protocols on Solana have processed a total of $2.5 billion – a 14% increase compared to the same period last week. This impressive growth not only far exceeds the 10% of Base but also stands in stark contrast to the downward trend of Ethereum (-3%) and BNB (-9%).

DEX trading volume by chain | Source: DeFiLlamaNotably, over the past 7 days, DEX trading volume on Solana has even surpassed the total trading volume of Base, BNB, and Arbitrum combined – a clear testament to the growing appeal of this ecosystem.

! Protocol and string fees | Source: DeFiLlama.Not only dominating in volume, Solana also rose to the top in terms of protocol fee revenue. Of the eight non-stablecoin protocols with the highest levels of revenue today, five are built on top of Solana — including Pump.fun, Axiom, Jupiter, Jito, and Meteora.

Among them, Pump.fun became a standout when it generated up to 2.73 million USD in fees in just one day and achieved a total revenue of 15 million USD within a week.

Can Solana surpass the $150 mark in the coming weeks?

Recently, the exponential moving averages (EMA) of Solana have generated a bullish cross signal – a technical indicator that often signals the beginning of a new upward trend.

SOL/USDT 4-hour chart | Source: TradingViewThis positive signal indicates that market momentum is leaning towards the bulls, raising expectations that the price of Solana may soon challenge important resistance levels ahead.

If the current upward momentum is maintained, SOL could aim for the $136 range. Breaking through this level could open the path to higher milestones at $147, $160, or even $180 in the case that demand continues to strengthen.

Conversely, if buying pressure weakens, Solana could retrace back to the support area around $124. Once this level is breached, the risk of a deeper decline will increase, with the next potential support areas at $112 and $95.

You can check the price of SOL here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

• PumpSwap expands the DEX ecosystem on Solana, not directly competing with Raydium.
• 3iQ’s Solana ETF in Canada selects Figment as its staking service provider.

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