Solana (SOL) price prediction: weekly rise over 21%! Bullish at 260 dollars driven by DeFi rise and institutional activity.

Solana (SOL) has performed excellently over the past week, with a price pump of over 21.6%, standing at 245 USD. This rise is mainly driven by a new high in Total Value Locked (TVL) in the DeFi sector, large institutional purchases, and a positive macro environment. The technical indicators also show strong momentum, suggesting that SOL is likely to advance towards the 260 to 270 USD range.

Decentralized Finance rise and whale activity drive Solana

A major driving force behind Solana's recent rebound is the significant growth of on-chain activity. According to data from DeFi Llama, the Total Value Locked (TVL) in DeFi on this network has exceeded $12 billion, setting a new historical high. This indicates that Solana's role in decentralized lending, trading, and staking platforms is becoming increasingly important.

At the same time, large investors are quietly accumulating positions. For example, on-chain data shows that Multicoin Capital transferred over $680 million worth of SOL, while Galaxy Digital purchased nearly $1.2 billion worth of SOL within three days, demonstrating institutional investors' long-term confidence in the Solana ecosystem.

Institutional Buying and Macroeconomic Benefits

The pump momentum of Solana has also been further driven by Galaxy Digital's massive purchase. The company spent $1.16 billion to buy SOL and hold it, a move that not only boosts market confidence in SOL's liquidity but also highlights its growing institutional support.

In addition, the macroeconomic environment has also provided support. The market generally expects the Federal Reserve to cut interest rates by 25 basis points, which usually provides additional support for risk assets, including cryptocurrencies. Coupled with Solana's strong fundamentals, this positive macro environment lays the foundation for prices to continue to pump before the end of the year.

Technical Outlook: Bulls Bullish on 260 USD

(Source: TradingView)

From a technical perspective, Solana's price prediction continues to strengthen. Currently, SOL is trading at $247.82, making a push towards the resistance area of $250. On the 4-hour chart, SOL remains within an ascending channel, consistently creating higher lows.

The technical indicators show bullish signals: both the 50-day and 200-day Exponential Moving Averages (EMA) are sloping upwards, confirming potential strength; the Relative Strength Index (RSI) is at 77, in an overbought condition, but historical experience suggests that a sustained rising trend can maintain high levels.

• If Solana can decisively break through 250 dollars, its target will extend to 260 to 270 dollars.
• If the price retraces to $244 or $235, this will be a healthy retest, while the EMA at $222 constitutes a structural bottom.

For long-term holders, if institutional funds continue to flow in, this rise may not be short-lived and could eventually break through the $300 barrier.

Conclusion

Overall, Solana's outstanding performance is the result of its strong on-chain fundamentals, increasing institutional support, and a favorable macro environment. Although the RSI indicates a potential consolidation in the short term, the potential for SOL to break through 250 USD remains strong. The prosperity of its Decentralized Finance ecosystem and continuous institutional buying together paint a clear path for Solana's long-term growth.