Analysis: On-chain activities and K-line suggest that SOL may break through 300 dollars

ChainCatcher news, according to Cointelegraph, the price of SOL surged 86% from April 7 to May 26, following the overall rise of the altcoin market, while Bitcoin reached a historic high of over $111,000.

The TVL of the Solana network grew by more than 54% from a multi-month low of $6.12 billion on April 7, reaching $9.44 billion on May 26, with an increase of nearly 20% in the past 30 days. According to DefiLlama data, the growth in TVL was mainly driven by Raydium, which increased by 52% in a month. Other major decentralized applications such as Jupiter DEX, Jito liquid staking, and Kamino lending grew by 12%, 25%, and 11%, respectively. Although the Solana token ranks fifth by market capitalization, its network TVL ranks second among top Layer-1 blockchains, only behind Ethereum.

Since January, the price trend of SOL has been showing a V-shaped pattern on the weekly chart, which refers to a bullish pattern formed when the asset price experiences a significant drop followed by a substantial rise. The V-shaped recovery is completed when the price rises to the resistance level at the top of the V-shaped pattern (also known as the neckline). SOL appears to be in a similar trend, with the current trading price below the supply and demand range between $180 and $200. Breaking through this range will increase the likelihood of the price rising to the $252 neckline and completing the V-shaped pattern.

In addition, the next target will be to break through the historical high of $295, which is a 66% increase from the current price.