Solana Approaches All-Time High as DEX Volumes Surge: Can SOL Price Touch $400?

Solana (SOL) has maintained its impressive bull run, reaching a new yearly high of $248.44 on November 18, 2024, as the cryptocurrency inches closer to its all-time high of $260.

The fourth-largest cryptocurrency by market capitalization has shown remarkable strength, backed by surging decentralized exchange (DEX) volumes and growing institutional interest.

Record-Breaking DEX Activity

Solana’s ecosystem metrics have painted a compelling picture of growing adoption. According to DefiLlama, the network’s DEX volume reached an unprecedented $41.2 billion last week, more than doubling its previous record of approximately $18 billion. This surge in trading activity has positioned Solana as the dominant force in the DEX landscape, commanding 48.27% of total volume across all chains – surpassing the combined volume of Base, BNB Smart Chain, Arbitrum, and Ethereum networks.

Institutional Interest and Solana ETF Speculation

VanEck’s recent filing for a spot Solana ETF has added another catalyst to the asset’s upward trajectory. The application, submitted on November 10, has sparked speculation about potential institutional adoption in 2025, contributing to the positive market sentiment.

Pump.fun’s Selling Pressure on SOL

Prominent memecoin launchpad Pump.fun has emerged as a significant source of selling pressure in the Solana ecosystem, with its latest move involving the liquidation of 105,000 SOL (valued at $25.14 million) to Kraken exchange. The platform’s total fee revenue has reached approximately 1,307,966 SOL ($315 million), with cumulative sales of 898,243 SOL ($157 million) to date.

Despite this systematic selling pattern, which includes a notable 43,000 SOL sale coinciding with Solana’s breach of the $200 resistance level, the market has demonstrated remarkable resilience. The ability to maintain upward momentum in the face of such significant selling pressure suggests robust underlying demand for SOL, though investors should remain mindful of potential short-term price impacts from large-scale liquidations.

SOL/USD Technical Analysis Points to Higher Targets

The monthly chart has formed a highly bullish cup-and-handle pattern, historically known for its 95% success rate and average profit yield of 54% post-breakout. Technical analysts suggest that once Solana clears its previous all-time high, the price could accelerate toward the $400 mark.

Supporting this bullish outlook:

• The asset has successfully flipped previous yearly highs into support levels
• Strong spot buying volumes, second only to Bitcoin among top cryptocurrencies
• Positive derivatives market indicators with open interest reaching $5.64 billion

Solana Price Prediction: Short-term Price Outlook

The rapid price appreciation has led to increased volatility, with the Bollinger Bands showing significant expansion. The immediate price action suggests strong support at $210 and $203.94 levels. For the bullish momentum to continue, Solana needs to:

• Maintain closure above $240
• Break through the psychological $260 resistance (all-time high)
• Hold support at $210 to prevent a bearish reversal

Market Implications

Solana’s performance has broader implications for the cryptocurrency market, particularly in the Layer-1 blockchain segment. The network’s ability to handle high transaction volumes while maintaining relatively low fees has attracted significant developer activity and user adoption.