Solana Crypto TVL Jumps 15%: Will $160 Support Hold This Time?

Key Insights:

• The TVL on Solana crypto rose 15.7 percent to reach $9.3B the previous week.
• SOL is experiencing a test of the short-term support level at the $160 area.
• The price depends on the ability of the $160 support zone to hold its ground.

Solana crypto has registered a remarkable recovery with its total value locked (TVL) amounting to $9.3 Billion. According to data from Artemis, this has increased by 15.7% in the recent period. This gives a sense of strength over the general volatility of the markets.

In June, TVL dropped below the level of $8.0 Billion. After that, it went up up until the middle of July. This was followed by a sudden increase of more than $10.5 Billion.

The present recession has reached $9.3 Billion, one of the highest since early 2022. This increment in TVL capital implies more interest by users in SOL backend DeFi applications despite the fluctuation in pricing.

Solana Crypto Price Action Tests Crucial Support Zone

While the TVL has been holding up, the SOL price has been experiencing some pressure. At the time of writing, Solana Crypto was trading for $162.03, a loss of 4.03% in the last 24 hours.

As CoinMarketCap data shows, the 24-hour trading volume decreased by 34.34% now amounting to, $5.04 Billion. Those points of decreasing volume suggest a slowing of energy. This could be a hindrance to whether the short-term technical support will hold.

However, the Bulls hope to put in a strong showing soon. This could be followed by an attempt at a key support area of between $155 and $160 on a daily chart of SOL. This range had acted as resistance in April, and it reversed to help in late June when it broke out.

A break below this level may cause another test of the $140 area, where there was a recent consolidation. On the other hand, this support should stabilize the sentiment for Solana crypto.

It should also lead to renewed upward pressure on the resistance band of $180 to $200 formed in July.

Technical Indicators Reveal Waning Strength on Solana Crypto

Short-term warnings emanate from technical indicators. ADX stands at 28.09. It is nearly above the level of 30. This indicates that the current trend is weakening, although it is not at the stage of completely changing.

Should the ADX continue to fall, it further solidifies a consolidation of prices. Otherwise, a minor retracement may soon be forthcoming.

The larger and medium-term price structure indicates a sequence of higher lows and higher highs. These have developed since early March and continue to define a longer-term uptrend channel.

As a clear trendline depicts, the short-term momentum has not been at its best. It has been countered downwards in the recent past period between February and July. Nevertheless, as long as SOL trades above $155, the big picture will be aligned.

Regardless of the short-term changes affecting the market, the increase in Solana TVL demonstrates good macro indicators. More capital inflow can help stabilize the Solana price and prevent further decline.

It also strengthens the current support level. This divergence becomes notable if total value locked (TVL) keeps increasing while the price stays steady. New investors may be drawn in to profit from a potential price rebound.

It remains crucial to see whether Solana crypto will test the $160 level since it is a worrisome short-term support level. A bounce off this point might restore a bullish mood and prepare the way to a retest of the resistance to $180.

The psychological resistance at $200 will continue as the main resistance level of an attempted advancement. Nonetheless, a solid break below the $155 mark would doubt the bullish context. This could pave the way for more corrections to at least the $140 mark.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.