Solana (SOL) has experienced an 18% surge this week, indicating a significant bullish momentum in the market. The altcoin is now approaching a critical juncture, with the potential of closing above the 50-week exponential moving average (EMA), a level that has historically triggered substantial rallies. In March, SOL slipped below the 50-week EMA and briefly fell below $100 on April 7. However, the cryptocurrency has since displayed a strong recovery, reclaiming key EMA levels such as the 100-week and 200-week EMAs, with the focus now shifting to the 50-week EMA.

Historical data suggests a bullish outlook for Solana. In October 2023, SOL breached the 50-week and 100-week EMAs, consolidating above these levels before rallying an impressive 515% by March 2024. A similar setup is currently seen, with the relative strength index (RSI) below 50, mirroring previous patterns. If the 50-week moving average continues to provide support, price targets for SOL could range between $250 and $350 by September 2025.

On the daily chart, Solana has recently closed above the 200-day EMA, with immediate resistance at $180. A break above this level in the near future, turning it into a support level, could potentially trigger a parabolic rally by the third quarter of 2025.

In addition to price movements, there has been a significant influx of liquidity into the Solana network. Over the last 30 days, more than $165 million has been bridged to Solana from other blockchains, indicating a growing confidence in the network. Ethereum led the way with $80.4 million in transfers, followed by Arbitrum with $44 million. Other chains such as Base, BNB Chain, and Sonic contributed $20 million, $8 million, and $6 million respectively.

Data from DefiLlama also shows that Solana has recorded the highest decentralized exchange (DEX) volumes, totaling 3.32 billion over the past 24 hours. With a market share of 28.99% among competing chains, Solana's dominance in DeFi activity underscores its scalability and growing user adoption. The substantial liquidity inflows and strong DEX volumes position Solana for a sustained price breakout in the future.

Overall, Solana's recent price surge, coupled with strong network fundamentals and growing confidence from the market, suggests a

Source: https://cointelegraph.com/news/solana-price-gained-500-the-last-time-this-sol-metric-turned-bullish?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound