As the Solana network continues to surpass Ethereum in multiple DeFi metrics, the SOL price trend struggles to reflect the growth. With the pullback growing intense, will Solana manage a bounce back to cross $300 in January 2025?
With Bitcoin BTC $91 273 24h volatility: 4.7% Market cap: $1.81 T Vol. 24h: $46.07 B floating above the $101,000 mark, Solana SOL $143.7 24h volatility: 5.2% Market cap: $74.31 B Vol. 24h: $4.59 B struggles to sustain its bullish momentum. Despite the 10.55% surge in the last week, the intraday pullback in the SOL price trend warns of a deeper correction.
Solana Price Analysis
In the daily chart, the SOL price action reveals a pullback rally gaining momentum. In the failure to overcome the local resistance trendline, the Solana price action is down to $213.84.
This marks five consecutive bearish candles, breaking below the 50% Fibonacci level at $213.89. Furthermore, it breaks under the local support trendline and the 20 EMA line.
As the selling pressure grows, the chances of SOL price retesting the 50 EMA line at $208.89 is significantly increasing. However, before the intraday pullback, the bullish trend in Solana, leading to the long-coming resistance trendline breakout, had multiple bullish effects.
It resulted in a golden crossover and has significantly increased the chances of a positive crossover between the 100 and 200 EMA lines. Despite the average lines maintaining a positive signal, the relative strength index warns of a downfall.
The 4-hour RSI line has dropped from the overbought zone to the halfway level, reflecting a massive shift in trend momentum.
Solana DeFi TVL Hits 3-year High amid New Record Highs
During the 24-hour high formation at $223, Solana registered its 3-year high in total value locked. The DeFi TVL of Solana hit $9.52 billion for the first time since 2021.
🚨 JUST IN: Solana’s DeFi TVL hits a 3-year high, surpassing $9.52B for the first time since 2021. pic.twitter.com/1dpHO9YzrE
— SolanaFloor (@SolanaFloor) January 7, 2025
Furthermore, this bullish achievement was accompanied by Solana surpassing Ethereum ETH $1 699 24h volatility: 8.0% Market cap: $204.85 B Vol. 24h: $20.56 B and all its Layer 2s combined in 24-hour DEX trading volume. Solana maintained a 24-hour volume of $3.982 billion while Ethereum stood at $1.706 billion.
🚨 JUST IN: Solana surpasses Ethereum and all its Layer 2s combined in 24H DEX trading volume. pic.twitter.com/7jZvog1hDr
— SolanaFloor (@SolanaFloor) January 7, 2025
More than double to Ethereum, the increased trading volume of Solana reflects its adoption at the grassroots level.
AI Meme Trend to Boost SOL Price
Amid the growing AI agent trend in the crypto market, Solana Network is smartly capitalizing on this trend. With Alchemist AI and SWARMS soon to list on Binance, these AI Meme Coins are a part of multiple rising AI Meme Coins on the Solana Network.
LISTINGS UPDATE: @binance set to launch perpetual contracts for two @solana-based AI memecoins:
– $ALCH (@alchemistAIapp)
– $SWARMS (@swarms_corp) pic.twitter.com/W5dCjRZiSQ— SolanaFloor (@SolanaFloor) January 7, 2025
The network has multiple rising coins like PudgyPenguins, ai16z, Bonk, and many more.
Conclusion
Solana continues to demonstrate strong long-term potential despite the current pullback, driven by significant milestones in DeFi adoption and growing network activity. With its DeFi TVL hitting a 3-year high and surpassing Ethereum in DEX trading volume, Solana is cementing its position as a leader in blockchain innovation.