Crypto investors are starting to regain their confidence with a little increase in volatility after the price has remained stable for a long time. Although the lack of volume continues, such increases can eventually bring back the investors who have lost faith in the market. However, before that, the return of the biggest Ethereum killer is necessary.
When the price dropped to the $8 region, many investors began to think that SOL Coin would go to zero. Then, Vitalik Buterin said that the escape of the money fathers was actually a good thing for SOL Coin. And the price returned to the double-digit region. Despite all the good news, AVAX dropped to a single-digit price due to high token inflation. Moreover, the token that went bankrupt was SOL Coin, its biggest financial supporter.
There is even better news for Solana today besides the price increase. The total locked value (TVL) on the network reached its highest level of the year last week. TVL, which reached its highest level since 2023, increased by 30%.
The increase in TVL is the strongest signal that SOL Coin is starting to make a comeback. Of course, it will need to rise steadily and reclaim the critical $1 billion threshold. TVL, which represents the value of the network, is directly related to the altcoin price.
Since the beginning of 2023, SOL Coin has performed better compared to the overall market. The price has steadily recovered. SOL has broken free from both the $18 resistance level and the long-term descending trend line that has been going on for 600 days. The price is now trading in a narrow range of $18-32.
Readings on the daily chart indicate that the trend has accelerated after Solana’s breakout from the descending wedge formation on September 14th. The price formed a higher low on September 27th and has since increased by 30% to reach $24.8.
RSI supports the upward movement. The next resistance is in the $27 region, and the price may test this region with an increase of approximately 12-13% (at the time of writing). However, if BTC starts its feared decline, the price could crash to the $19 support level faster than expected. In the short term, the $27 resistance is critical for the price, while in the long term, whether TVL can exceed the $1 billion threshold will be of vital importance.