Solana (SOL) has been showing strong bullish momentum, trading above $230 at the start of the week after gaining nearly 9% over the past seven days. On-chain metrics, growing stablecoin activity, and positive derivatives signals indicate increasing investor confidence, with bulls targeting the all-time high of $295.83.

On-Chain Metrics Signal Growing Confidence

Solana’s ecosystem continues to expand as DeFi and stablecoin adoption rise. DeFiLlama data shows Solana’s stablecoin market capitalization has reached a new all-time high of $15.11 billion, steadily increasing since mid-September. This growth reflects heightened usage of SOL-based applications, spanning DeFi protocols, payment systems, and tokenized assets.

In addition to stablecoins, Solana’s Total Value Locked (TVL) has climbed from $10.78 billion on September 28 to $12.69 billion, nearing its record of $13.02 billion. Rising TVL indicates that more users are depositing and utilizing assets across Solana protocols, highlighting the network’s expanding footprint and attracting further investment.

Solana Derivatives Data Shows Bullish Bias

The derivatives market also reinforces a positive outlook. CoinGlass’s OI-weighted funding rate shows a flip from negative to positive on Saturday, currently standing at 0.0052%. This signals that long positions are paying shorts, a historical indicator of potential rallies.

Furthermore, the long-to-short ratio for Solana has reached its highest level in over a month, showing that traders are increasingly betting on upward price movement. These signals suggest sustained buying interest and reduced downside pressure, supporting the potential for SOL to approach previous record highs.

Technical Analysis Supports Rally Potential

From a technical standpoint, Solana has found strong support around the daily level at $230, coinciding with the 61.8% Fibonacci retracement at $193.52 from the recent dip on September 26. Since then, SOL has surged approximately 18%, demonstrating resilience and buyer confidence.

The Relative Strength Index (RSI) on the daily chart sits at 57, above the neutral level of 50, indicating bullish momentum is building. Meanwhile, the Moving Average Convergence Divergence (MACD) recently formed a bullish crossover, complemented by rising green histogram bars, signaling continuation of the upward trend.

SOL Outlook: Targeting $295.83

If the $230 daily support holds, Solana bulls could push the price toward the all-time high of $295.83. On-chain growth, increasing TVL, and rising stablecoin activity provide strong fundamental backing, while derivatives positioning reflects optimism in short-term price movement.

The combination of technical and fundamental factors suggests that SOL could maintain upward momentum, attracting both retail and institutional traders. Additionally, Solana’s ongoing network upgrades and ecosystem developments may further support price appreciation.

Key Drivers for Continued Growth

1. Stablecoin Expansion – Growing stablecoin capitalization indicates heightened network activity and utility.

2. Rising TVL – Higher Total Value Locked demonstrates trust in Solana protocols and attracts new users.

3. Positive Funding Rates – Long positions paying shorts historically correlate with price rallies.

4. Bullish Technical Indicators – RSI above 50 and MACD crossover suggest momentum is favoring buyers.

5. Ecosystem Developments – Ongoing DeFi adoption, NFT platforms, and payment use cases support long-term growth.

Conclusion

Solana is currently at a critical juncture, with on-chain metrics, derivatives data, and technical indicators all pointing toward potential gains. Bulls targeting $295.83 are supported by both investor confidence and fundamental ecosystem growth. Traders and investors should watch the $230 support level closely, as holding above this zone could pave the way for new record highs.

With strong network fundamentals and bullish market sentiment, Solana may continue to attract both retail and institutional attention, reinforcing its role as one of the leading altcoins in 2025.