Solana (SOL) Price: Bulls Take Control as Crypto Outperforms Ethereum by 20%

TLDR

• Solana (SOL) has rallied over 30% in the past week, reaching $132.49
• SOL/ETH ratio hit its highest weekly close ever at 0.080 on April 13
• Long/short ratio reached a 30-day high of 1.06, indicating bullish sentiment
• Technical indicators like MACD crossover and RSI at 53.49 suggest continued upward momentum
• Despite price gains, network activity metrics show significant decline in fees and DEX volumes

Solana (SOL) has experienced a remarkable price surge over the past week, climbing approximately 40% from its recent low of $95.23 to reach $132.49. The cryptocurrency has shown significant strength against Ethereum, with the SOL/ETH ratio hitting its highest weekly close ever at 0.080 on April 13, according to data from multiple sources.

This rally comes amid increased trader confidence, as evidenced by the long/short ratio reaching a 30-day peak of 1.06. This metric indicates more traders are opening long positions, betting on continued price increases for the asset.

The price increase follows a consolidation phase that began after SOL bounced from its one-year low. The cryptocurrency has formed higher highs on the daily chart since April 4, suggesting a clear uptrend is underway.

Technical Indicators Point to Continued Strength

Technical analysis supports the bullish case for Solana. The Moving Average Convergence Divergence (MACD) indicator shows a recent crossover, with the MACD line moving above the signal line. This crossover generally signals increasing buyer momentum in the market.

The Relative Strength Index (RSI) currently sits at 53.49, comfortably above the 50 mark that typically separates bullish from bearish territory. The growing green histogram bars on the MACD further confirm the building strength of the current move.

Solana’s price rise has outpaced many other cryptocurrencies in the market. While SOL has increased by approximately 35% over the last seven days, Ethereum (ETH) has only seen a 13% increase during the same timeframe.

Some traders are now eyeing the possibility of SOL reaching $300, which would mark new all-time highs for the cryptocurrency. The January rally briefly pushed SOL to $295, just shy of this psychological barrier.

Key Resistance and Support Levels

If buyers maintain their momentum, SOL could break out of its current pattern and rise toward $147.6, its next crucial resistance level according to chart analysis. This would represent a continued recovery from recent lows.

However, market participants should be aware of key support levels at $103.17 and $95.54 should selling pressure increase. These price points could serve as potential bounce areas if the current rally loses steam.

Trader BitBull has drawn parallels between SOL’s current price action and Ethereum’s behavior before its 2021 breakout to all-time highs. The trader noted that SOL is “showing a similar structure on the CME futures chart” as it trades within the $120-$130 range, potentially setting up for “a massive move in 2025.”

Network Activity Shows Mixed Signals

Despite the price rally, several on-chain metrics suggest SOL faces challenges on its path to new all-time highs. Network activity data shows a substantial decline in transaction fees and trading volumes.

Solana’s network fees have dropped more than 97% to $898,235 on April 14, compared to $35.5 million on January 20. This dramatic decrease in fees correlates with reduced trading activity on several Solana-based decentralized applications.

Similarly, daily decentralized exchange (DEX) volumes on Solana have plummeted to $2.17 billion on April 14, representing a 93% decrease from its January 20 peak of $35.9 billion.

The decline in network fees aligns particularly with reduced trading activity on platforms like Raydium, Pump.fun, and Orca. Meanwhile, fees have remained relatively stable since mid-February on other applications such as Jito, Moonshot.money, Meteora, and Photon.

These metrics indicate that SOL’s journey toward new all-time highs may face headwinds unless there is a resurgence in network activity and usage.

SOL currently trades at $132.49, which places it 54.5% below its all-time high recorded on January 19. The cryptocurrency needs to overcome several resistance levels before reaching new heights.

The current price action has triggered increased interest from traders looking for continuation patterns that might signal further gains. The trading community appears divided on whether SOL can maintain its momentum given the mixed signals from price action and on-chain metrics.

For now, SOL maintains its position as one of the top-performing major cryptocurrencies in recent days, with traders closely monitoring technical indicators and network activity for clues about its next major move.