Solana has recorded a massive surge in trading volume on two decentralized exchanges, Raydium and Orca, in the last seven days. According to data, this dramatic surge birthed a 42% increase in SOL’s Total Value Locked (TVL).
SOL’s price also reacted to this increased interest, scoring notable gains in the last week and rising above $60 to a high of $67.69 on November 15.
Data from DeFiLlama showed a 54% increase in Solana’s trading volume on decentralized exchanges (DEX). According to the data, the total trading volume surpassed $3.01 billion, a new high in the SOL ecosystem.
SOL trading volume on the two top decentralized exchanges, Orca and Raydium, increased 45.7% and 47.79%, respectively, totaling 95.49% in one week. More so, Orca’s utility token reacted to this massive spike in trading volume, surging nearly 20%.
Following this development, SOL TVL spiked 42% from $409.68 million on November 1 to $584.56 million on Monday, November 20. This development secured Solana among the top three chains in weekly transaction volume, after Ethereum ($9.97 billion) and Arbitrum ($4.49 billion).
Apart from the notable 7-day increase in trading volume, Solana has performed remarkably well in the last 30 days. SOL has recorded an impressive 125% 30-day price gain.
Amid this frenzy, prominent crypto investor and Ark Invest CEO Cathie Wood expressed optimism about Solana’s potential growth. During a November 15 CNBC interview, she praised the Solana Blockchain for its speed and efficiency. As a result of Wood’s bullish sentiment, SOL price soared even higher, scoring 20% within a day.
However, although SOL capitalized on these positive changes to soar above $60, its rally has stalled. After an erratic price surge to $67.69 on November 15, SOL’s price dipped to $55 on November 17.
Its price now stands at $60.66, with a 24-hour price increase of 1.49%. But despite the minor price gains in the last 24 hours, SOL retains over 5% of its past week’s gains.
Solana Price Outlook
The chart below shows that Solana (SOL) has broken out from a bearish trendline and has formed a new one. After trading between the $18 and $20 ranges for several weeks, SOL broke through a critical resistance at $23 in mid-October. And since then, the token has been unstoppable.
SOL continued soaring, breaking another significant resistance at the $42 price level and exceeding $60 on November 15. Although the bears have fought to suppress SOL’s strides, the token is still significantly above two simple moving averages ($24.59 and $36.25).
So even though the asset has dropped in price, there’s a support level at the $58 price level that could prevent further decline.
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