Solana near yearly high after 27% July gain and SOL price ‘double bottom’
2024.07.29 17:02
Solana (SOL) price is primed to end July with a 30% monthly return and looks poised to challenge its yearly high of around $210 over the next few weeks.
SOL/USD daily chart. Source: Trading View
While most of the community attributes SOL’s success to its memecoin euphoria, its robust liquid staking ecosystem is emerging as a strong onchain narrative. Let’s look at how this current trend is developing on the Solana network.
Liquid staking tokens are leading Solana DeFi
Last week, Cointelegraph highlighted how Solana’s total value locked (TVL) data jumped 10%, reaching $5.42 billion. Consequently, transaction volume increased, and onchain activity rose.
It was observed that Jito and Marinade were the leading protocols on Solana. Jito and Marinade are liquid staking platforms that registered a TVL rise of 40% and 30%, respectively, over the past month.
Solana Protocol Rankings. Source: Defillama
Liquid staking is a process that combines the positives of staking and liquidity. Holders can stake their tokens in a smart contract or staking pool through liquid staking, which allows them to receive a token representing staked SOL.
This token can be referred to as a liquid staking token or LST, and it can be used to derive yields on other protocols or utilized in DeFi applications. $JitoSOL or $mSOL are prime examples that represent the Jito and Marinade protocol.
Data from Dune Analytics highlights that the total amount of Solana deposited in liquid staking derivatives more than doubled in 2024. Staked LSTs rose from 163,827 to 807,712, a 393% uptick between June 1 and July 26.
Total Staked LST chart: Source: dune analytics
Token Terminal, a data analytics platform, also suggests that Solana’s daily and weekly active users are up 21% and 59%, respectively. The rise in active users is simultaneous with the rise in TVL for Jito and Marinade, as highlighted above. Hence, it can be inferred that memecoins are not the only sector currently bringing users to the Solana network.
Solana daily active users(weekly). Source: Token Terminal
Will Solana reach a new yearly high this week?
Solana’s price action shows bullish momentum, and the community expects the price to retest its yearly high at $210. At the time of publication, SOL had breached a bullish double-bottom pattern, with current overhead resistance at $202.
The overhead resistance is fairly weak, and there is a high probability of a yearly high retest. However, Solana is currently witnessing a correction, falling below the $190 mark.
If Solana continues to follow a bullish trend, its immediate retest target remains in the $200–$210 range. Conversely, if Solana loses its immediate support zone at $180, the altcoin may retest its previous swing low price at $165.
SOL/USD daily chart. Source TradingView
Trader Wick, an options trader with 18 years of experience, is, meanwhile, leaning bullish, indicating that SOL/USD is once again leading the crypto market rally.
“Solana outperforming on the bounce as usual,” he noted.
“Now breaking out of resistance on a breakout arrow setup that usually starts brand new trends.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
