SOL’s $118 price level has been a critical support zone since March 2024
Solana’s Total Value Locked (TVL) has nearly quadrupled since November, reaching near all-time highs
Major financial institutions including PayPal have integrated Solana, boosting institutional adoption
Multiple Solana-based protocols now exceed $1 billion in TVL, led by Jito with $2.04 billion
Over $550 million has been bridged to Solana in the past month, including $400M from Ethereum
Solana has been testing its critical $118 support level repeatedly since March 2024. This price zone has served as a vital border preventing SOL from experiencing more severe price drops. However, recent market pressure from Trump’s “Liberation Day” tariffs has pushed the cryptocurrency below this support level.
At the time of writing, technical indicators suggest mixed signals. The MACD and Signal lines remain below zero, indicating selling pressure, but the histogram shows some positive momentum that could slow the downward trend.
The cryptocurrency slid by as much as 24% from Tuesday last week, dropping as low as $112.24 in the last 24 hours. This decline erased gains achieved in the first half of March.
Market uncertainty remains high, which could further erode investor sentiment. If FUD continues to affect the market, SOL may experience more downside.
Network Growth Defies Price Action
Despite price fluctuations, Solana’s network fundamentals display remarkable strength. The amount of SOL tokens locked has been steadily rising since late November, with Solana’s TVL reaching 65.04 million SOL as of April 2.
For perspective, Solana had only 16.61 million SOL in lock-up as of November 20. This means TVL has almost quadrupled since then, approaching the previous all-time high of 67.69 million SOL from mid-June 2022.
This TVL uptrend suggests long-term holders are staking for passive gains while waiting for price appreciation. It represents a sign of long-term confidence in the network.
Daily transactions on Solana also demonstrate healthy activity despite market headwinds. While transactions have dipped below 50 million daily (from a peak of 76.75 million on January 23), the network still registered 47.72 million transactions on April 2.
Institutional Adoption Accelerates
In a significant development, PayPal has officially integrated Solana, potentially introducing millions of users to its ecosystem. This move could inject major liquidity into the network and reinforce confidence in Solana’s long-term prospects.
U.S. institutions are also eyeing Solana’s staking ecosystem. Marinade Finance has hinted at developing a non-custodial and compliant staking solution designed specifically for institutional investors.
If this materializes, it could enhance Solana’s liquidity, improve network security, and attract a new wave of capital, making Solana a strong contender for long-term institutional adoption.
DeFi Ecosystem Shows Explosive Growth
Solana’s DeFi ecosystem is displaying remarkable strength. Multiple Solana-based protocols have now surpassed $1 billion in Total Value Locked (TVL).
Leading the charge is Jito with $2.04 billion TVL, demonstrating that liquid staking on Solana is rapidly gaining traction. Kamino Finance and Marinade Finance are also seeing significant inflows.
Despite the price being down, the #Solana#DeFi ecosystem continues to look solid with a number of projects seeing more than $1B in TVL.
Solana’s daily DEX volume of $2.417 billion has surpassed that of Ethereum ($1.899 billion), BSC ($1.066 billion), and Base ($973.44M). This elevated DEX usage, combined with the creation of over 1.15 million new tokens on Solana, could drive increased user adoption.
More than $550 million has been bridged from other chains to Solana over the past month, including over $400 million from Ethereum to Solana alone.
Technical Analysis Suggests Potential Recovery
If SOL reclaims the $118 level, it could move toward the descending trendline approaching the $130 area. Breaking through this resistance zone could create upward momentum toward targets near $150 or higher.
Some analysts believe the current price action could be a final shakeout before a major rally. If SOL defends the $124 support level and bounces, we could see a move back toward $140-$150, potentially setting the stage for a retest of upper resistance near $210-$230.
With strong developer activity and growing ecosystem strength, Solana’s long-term trajectory remains potentially bullish, even if short-term volatility continues.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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