February 8, 2024: The Solana network has witnessed an impressive surge in Total Value Locked (TVL), breaching the $1.8 billion mark, a level not seen in 20 months. Amidst this growth, SOL’s price has soared past $100, and current trends suggest the momentum may continue, potentially reaching new heights.

Price Breakthrough as Solana Defies Outage Setback

Solana’s SOL token has seen a significant price increase, surpassing the $100 milestone on February 8. Despite a network outage earlier in the month, Solana’s defi ecosystem has shown robust growth, contributing to a bullish outlook for the cryptocurrency.

On-Chain Data: A Harbinger of Further Gains?

On-chain metrics indicate a strong inflow of capital and heightened network participation, suggesting that SOL prices may continue their upward trajectory in the days to come.

Recovery and Rally: Solana’s Price Dynamics

Following a 35% rise at the end of January, SOL prices took a hit due to a five-hour network outage. Nevertheless, investors remained optimistic, and SOL made a significant recovery, reaching $105 by midday Eastern time on February 8.

Capital Inflows Fuel TVL Surge

The 33.6% price rally over the last 16 days appears to be driven by the defi ecosystem on Solana, which has attracted millions in capital inflows, propelling the TVL to a 20-month peak on February 8.

Defi Projects Lead the Charge

Defi projects like Jupiter (JUP), Jito, Kamino, and Blazestake have been at the forefront of Solana’s recent success, drawing significant investor interest and contributing to the TVL’s milestone achievement.

TVL Growth Spurs SOL Demand

The increase in TVL signals a growing investor interest in Solana’s native projects. As transactions on these platforms rise, so does the demand for SOL, potentially leading to further price appreciation.

What’s Next for SOL Prices?

The upward trend in TVL and the resulting demand for SOL hint at the possibility of the token retesting the $120 level in the near future. However, investors should keep an eye on key resistance points and potential bearish moves that could challenge this optimistic outlook.

Bulls and Bears: The Technical Tug of War

Technical indicators suggest potential resistance around $105, but a breakout could pave the way to $120. On the flip side, if bears push the price below $80, the bullish prediction could be invalidated, though support around $83 might offer a rebound opportunity.