Solana hits high in May 2022; Is this good news for SOL traders?

• Solana’s TVL is at its highest level in 22 months.
• Key technical indicators indicate increased bearish activity in the SOL market.

Solana (SOL) decentralized finance (DeFi) total value locked (TVL) has reached its highest level since May 2022. DefiLlama’s data.

At press time, Layer 1 (L1) network TVL was $4.03 billion, up 97% in 30 days. According to DefiLlama’s ranking, Solana is the only blockchain among the top 10 DeFi networks whose TVL has increased so much in the last 30 days.

Increased demand from users for Solana

Solana’s TVL growth is attributed to the recent increase in user activity on the network.

According to data from The Block Panel, the monthly number of new addresses on Solana has reached an all-time high. Over the past 21 days, the number of unique first signers transacting on the Solana network reached 16.32 million.

Additionally, the number of active addresses has seen a significant increase so far this month. AMBCrypto found that this amount was $22.19 million, which represents Solana’s highest level since July 2022.

The total amount of transaction fees paid on Solana reached a multi-month high of $5.08 million on March 18, due to increasing user activity on the chain.

Data from DefiLlama showed that on that day, the protocol’s revenue from transaction fees rose to an all-time high of $2.5 million.

SOL demand declines, but bearish sentiments rise

At the time of this publication SOL was trading at $179 coinmarketcap data. Although affected by the overall decline in the market last week, demand for SOL continues to exceed coin selling among spot market participants.

AMBCrypto’s readings of the coin’s key momentum indicators showed that they were positioned above their neutral lines at the time of publication.

For example, SOL’s Relative Strength Index (RSI) and Money Flow Index (MFI) were 61.19 and 80.74, respectively. These values ​​showed that traders favored SOL accumulation on delivery that day.

Furthermore, the coin’s positive Chaikin Money Flow (CMF) value indicated an influx of liquidity into the SOL market. At the time of writing, SOL’s CMF was 0.16.

How much is 1,10,100 SOL worth today?

However, despite this, SOL’s Parabolic SAR (Stop and Reverse) indicator indicated a steady increase in bearish activity, indicating a decline in bullish sentiment in the overall market.

This indicator identifies potential trend directions and reversals. When its dotted lines are above the price of an asset, traders take it as a signal to exit a long position or initiate a short position.

This is an automatic translation of our English version.