Solana Price News: SOL Sets Eyes on $90 Again, Setting Stage for Major Breakout

Solana (SOL) is once again approaching the critical $90 supply zone. The token has dropped multiple times after hitting this mark, but the market seems determined to break it this time.

This altcoin has lagged Bitcoin (BTC) and Ethereum (ETH) in the past 30 days, losing 2.4% while these two have yielded a 12% gain during that same period.

Trading volumes in the past 24 hours have jumped by 35% to $5.3 billion, currently accounting for nearly 11% of its circulating market cap.

Last week, we saw a strong spike in trading volumes. According to data from Artemis, these were the highest weekly volumes since early March.

However, since the price action’s bias is now bullish, this increases the odds of an upcoming breakout of Solana’s key ceiling at $90 as buying pressure is rising.

Meanwhile, Solana ETFs brought in some attractive inflows for the past 8 days in a row. In total, these vehicles have received $50 million from investors. Paired with the token’s latest recovery, the total assets held in these funds sit at $863 million.

Solana’s Small DeFi Footprint Caps the Token’s Upside Potential

The disconnection between SOL’s performance and that of BTC and ETH could be the result of the network’s struggles to attract users for use cases other than meme coin trading and speculation.

Solana is known for being the home of top protocols in this segment, like Pump.fun. However, since the meme coin market has suffered a strong blow in the past six months or so, interest in this category has faded.

Meanwhile, in the DeFi category, on-chain data shows that the Solana blockchain has managed to attract only a handful of successful projects. Ethereum continues to be the undisputed market leader in this niche, with billions of dollars locked in protocols like Aave ($12.8 billion TVL), Lido, and Ethena.

Comparatively, Kamino, the largest DeFi protocol in the Solana ecosystem, has a TVL under $2 billion.

In addition, even though Solana is considered a more scalable and cheaper alternative compared to the EVM, it is less decentralized than the latter. According to data from Token Terminal, Solana has 777 active nodes validating transactions while Ethereum has 912,000.

This makes the network, theoretically, more susceptible to downtimes, 51% attacks, and so on. However, thus far at least, Solana has reported few disruptions since the mainnet was launched in 2020.

SOL Could Deliver a 36% Gain If It Reverts to Its Mean

Heading to the daily chart, a breakout of the $90 level should catalyze a move toward the 200-day exponential moving average (EMA), but most likely to the $120 supply zone. The primary fuel for this rally would be accumulated stop orders for short positions sitting in that range.

This would translate into a 36% upside potential in the near term, making SOL one of the most attractive assets to speculate with at the moment.

If the Relative Strength Index (RSI) rises past the 60 mark, that would increase the odds of a breakout, as it means that bullish momentum is accelerating.