Solana (SOL) Price: Approaches $200 as DeFi Metrics Show Strong Growth

TLDR

Table of Contents

Solana has reclaimed the $180 mark, rising 6% daily and 22% weekly
Total Value Locked increased from $7.5B to $9.6B in May
Weekly DEX volumes grew from $18B to $22B
Bearish sentiment growing with long/short ratio at 30-day low (0.86)
Technical indicators show overbought conditions with RSI at 71

Solana has seen a strong price recovery in May 2025, reclaiming the $180 mark for the first time since mid-February. The cryptocurrency has experienced a 6% price increase over the last day and an impressive 22% gain over the past week.

This price movement comes as Solana’s open interest has risen by 11.08%, according to Coinglass data. More traders are entering the market with new contracts, generally indicating growing investor confidence in SOL.

The DeFi ecosystem on Solana shows robust growth. According to DeFiLlama data, Solana’s Total Value Locked (TVL) has jumped from $7.5 billion at the beginning of May to $9.6 billion currently.

Several platforms on the Solana network have seen substantial growth. Marinade has increased by 56%, Jito by 41%, and Raydium has surged by 78%.

Weekly decentralized exchange (DEX) volumes have also shown strength. They increased from $18 billion the previous week to $22 billion last week.

Network Activity Strengthens

Chain activity metrics reinforce the positive trend. Revenues and transaction fees on Solana have been climbing steadily for four weeks, approaching three-month highs.

With 65% of SOL tokens staked, the combination of increasing DeFi usage demand and limited available supply could support further price growth.

However, not all metrics are positive. Solana’s overall stablecoin market capitalization dropped by 8% to $11.7 billion in the past seven days.

The funding rate stands at 8%, indicating traders are paying more to hold long positions. While this shows bullish sentiment, it often precedes short-term corrections in the market.

Solana currently leads in DEX activity by a wide margin. Over the past seven days, Solana has recorded $22.4 billion in DEX volume, outpacing Ethereum by over $6 billion and staying well ahead of BSC, Base, and Arbitrum.

The network’s high performance and low fees continue to attract traders, memecoins, and liquidity.

Technical Analysis Shows Mixed Signals

Technical indicators offer a mixed outlook. SOL is trading above all major moving averages, with the 10, 20, 50, 100, and 200-day EMAs and SMAs all showing “buy” signals. This confirms a strong upward trend.

#Solana $SOL has reached a critical resistance area at $175! pic.twitter.com/hP66opUPKD
— Ali (@ali_charts) May 12, 2025

However, the Relative Strength Index (RSI) sits at 71, indicating overbought conditions that may limit short-term upside potential.

The Bollinger Bands are widening, with SOL trading close to the upper band. This typically precedes a period of correction or consolidation and indicates high volatility.

Immediate resistance for SOL lies near $185, the top of the current band. A breakout above this level could open the path to the $200 mark.

On the downside, support is seen around $157 (20-day EMA) and $130, where the lower Bollinger band and previous consolidation zone align.

The MACD remains in bullish territory, with a clear divergence above the signal line, suggesting momentum hasn’t entirely faded.

The long/short ratio has dropped sharply to 0.8653 as of May 13, marking its lowest level in the past 30 days. This indicates short positions now outweigh longs by a significant margin—53.61% short vs. 46.39% long.

SOL traded around $174.53 at press time, consolidating after a sharp rally earlier this month. If SOL breaks above $176, it could target the $185-190 range. However, failure to hold the $170 support zone might trigger a retracement toward $160.

While SOL remains 39% below its all-time high of $295, the road to $200 seems more likely if current market conditions hold.

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