Solana Leads Market Recovery with 16% Weekly Gain, Surpassing Ethereum in DEX Activity

Amid ongoing global economic tensions and volatility in the cryptocurrency market, Solana (SOL) has shown impressive resilience, surging 16% in the past week. This strong performance has allowed SOL to reclaim its dominance in decentralized exchange (DEX) activity, surpassing Ethereum once again.

On Thursday, Solana’s price increased by more than 4%, while the broader CoinDesk 20 index saw a rise of about 3%. The $125 to $127 range has proven to be a strong support zone, effectively rejecting multiple downside attempts. On the other hand, the $133.50 to $133.60 range has acted as a key resistance level for SOL, according to CoinDesk Research’s technical analysis.

Blockchain data reveals that over 32 million SOL—more than 5% of the total supply—has accumulated at the $129.79 level, positioning it as a critical pivot for future price movements.

Technical Analysis Breakdown

• Support and Resistance Levels: SOL has established a solid support zone between $125 and $127, which has consistently held off downward pressure. Resistance at the $133.50-$133.60 range continues to prevent significant upward movement.
• Price Resilience: After dipping to $123.64 on April 16, SOL bounced back by 4.5%, reaching a high of $135.57, signaling a clear upward trend.
• Spot ETF Launch in Canada: On April 16, Canada launched the first spot Solana ETFs, issued by asset managers like 3iQ, Purpose, Evolve, and CI. This move is expected to attract institutional investors and increase SOL’s exposure in the market.
• Reclaiming DEX Dominance: Solana has overtaken Ethereum in decentralized exchange (DEX) activity, with a 16% price gain over the past week. The total value locked (TVL) in Solana has also risen by 12%, reaching $7.08 billion.
• Strong Accumulation: A sharp surge in volume was observed on April 16, with over 3 million SOL traded as the price broke through the $130 resistance level, indicating strong accumulation during this period.
• Fibonacci Retracement: The rally appears to have reclaimed the key 61.8% Fibonacci retracement level, following the decline from the April 14 high of $136.01 to the April 16 low.
• Short-Term Price Correction: SOL experienced a brief downward correction, dropping from $134.11 to $130.81, a 2.5% decline in the final 100 minutes of trading. This correction was accompanied by a notable volume spike, suggesting increased selling pressure.
• Breakdown and Liquidations: A breakdown at the $132.00 support level triggered a cascade of liquidations. If bearish momentum continues, SOL may test the $125-$127 support zone, especially with the recent retracement beyond the 78.6% Fibonacci level.