Over the past week, the Solana price has spiked over 20% as its total value locked (TVL) hits its highest level in 2023. As such, speculation is rising over whether this could be the beginning of a new larger rally.
While many other top cryptos are also in the green recently, SOL has massively outperformed the majority.
It now sits at a $10 billion market cap but has decreased significantly from its all-time high (ATH). Its current price is $23.46, which is still 90% lower than its November 2021 ATH of $260.06.
SOL TVL Surges But Long-Term Price Remains Flat, Breakout Immenant?
Solana’s TVL has steadily climbed through 2023, beginning the year around $420 million and climbing to $1.153 billion today.
While its recent price action reflects a more bullish outlook, its long-term results are less promising. Its price is currently down 25.82% since this time last year, and its TVL has plunged.
SOL’s TVL was $2.2 billion on 2 October 2022, almost a 50% decrease in TVL but just a 25% price decrease. However, this does not necessarily mean that Solana is currently overvalued, as it was undergoing immense struggle last year due to technical issues and the aftereffects of the Luna Tera collapse.
Over the recent crypto winter, the market has been somewhat cleansed, with many over-leveraged institutions like FTX and 3 Arrows Capital collapsing and retail investors gaining a larger foothold in the Solana and other projects. Furthermore, Solana’s active developer community has propelled the project forward and reduced the network outage time, which was one of the project’s major criticisms.
This is evident in the blockchain’s daily code commits faring at a higher level than leading up to its ATH in 2021.
Considering these factors, the Solana fundamentals are holding up well, and its continued development activity is a sign that the project could recover in the next bull market.
The Solana price chart below shows it has surged past the 200-day EMA for the first time since June. It is worth noting that the price climbed 83% and peaked at $32 the last time it broke above.
This time, SOL broke above the 200-day exponential moving average (EMA) at a higher price, providing potential for the price to go beyond $32. However, the relative strength indicator (RSI) is currently over 83, at a similar level to its peak during the last run-up. This means that the coin is overbought and that buyers are losing momentum.
As such, the price will likely pull back before another big move to the upside. With the $25.4 level just ahead, this could prove a strong resistance, causing SOL to have a pullback and possible consolidation before it continues higher.
If consolidation occurs, it will likely find support at $22, which has acted as a support and resistance level in recent months.
However, while Solana looks poised for sideways movement, other emerging cryptos aim to outperform the top 10 crypto. TG Casino is one of those projects, currently enjoying an explosive presale, having raised over $340K so far.
