Why is Solana (SOL) price up today?
Solana price is up today, and charts suggest it could be en route to new all-time highs.
Solana
SOL
$186
price continues to rally, rising by over 6.5% in the past 24 hours and reaching an intraday high of $183 on July 26. The recent gains take cues from an uptick in tokens within the Solana ecosystem, increasing network activity and a strengthening market setup.
Let’s have a close look at the factors driving Solana price up today.
Recovery in Solana-based tokens backs SOL price
Multiple tokens in the Solana ecosystem have been recovering over the last 24 hours, mirroring a recovery across the broader crypto market.
Data from CoinMarketCap reveals that the total market capitalization of cryptocurrencies built on the Solana blockchain has seen significant gains in the last seven days, from $220.93 billion on July 19 to $234.70 billion on July 26.
Jupiter (JUP) posted the most daily gains, rising 10.72% over the 24 hours and 4.28% in the last seven days. Pyth Network (PYTH) followed with 8.65% over the last 24 hours and 10.47% over the last seven days.
The largest Solana-based meme token by market capitalization — Dogwifhat (WIF) — saw a 4.46% price ascent on the day and a 4.48% increase in a week, bringing its market cap to $2.62 billion.
The bullishness displayed by Solana-based tokens reflects a broader investor sentiment toward the ecosystem, driven by high airdrop activity that has seen SOL price rally more than 1,750% since Jan. 1, 2023, when it traded below $10.
SOL price boosted by high network activity on Solana
SOL’s price surge on July 26 is backed by high network growth, evidenced by increased network activity and total value locked (TVL).
Data from DefiLlama shows that the TVL on Solana has jumped more than 8.8% from $4.9 billion to $5.42 billion, over the last seven days.
Meanwhile, volume on the network has jumped approximately 19.5% from $1.63 billion to $1.94 billion over the last 24 hours.
Increased TVL and high volume points to increasing network activity, suggesting more user engagement and development activity on the blockchain.
Additional data from DappRadar shows a 15% increase in total unique active wallets on the Solana blockchain over the past week. The DeFi TVL on the network also jumped by 9.5% over the same period, fueled by TVL increases on Marinade Finance, Solend, Tulip Protocol and Quarry.
Increased network activity leads to increased demand for SOL, driving up its price.
Related: Price analysis 7/26: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
Is SOL’s cup-and-handle pattern a sign of things to come?
From a technical perspective, the SOL/USD pair has been forming a cup-and-handle chart pattern on its daily time frame since May 20.
A cup and handle setup is a technical formation that appears when the price falls initially, followed by a steady recovery in what appears to be a U-shaped recovery, which forms the cup. Meanwhile, the recovery leads to a pullback move, wherein the price trends lower inside a descending channel forming the handle.
The pattern is resolved when the price breaks above the handle, rallying to an approximately equal size to the prior decline. The SOL/USD chart below illustrates a similar bullish technical setup.
Note that SOL now trades higher inside the handle range and is pursuing a recovery toward the neckline resistance at $186. Afterward, a decisive daily candlestick close above the neckline could lead the SOL price to $252, up 35% from the current levels.
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