Solana Price News: SOL Bounces Off Key Support and Could Rise to $200

In the past 7 days, SOL has experienced a significant decline of 10.6% as cryptocurrencies have kept dropping amid a relatively unfavorable macro backdrop.

Despite this retreat, the token has outperformed Ethereum (ETH), its top rival in the smart contracts segment, as the latter has experienced a more dramatic yearly decline of 18.5%.

This Bullish Pattern Anticipates Significant Gains for SOL

SOL’s daily chart shows that the downtrend has briefly stopped at a key area of support at around $170.

The token has already bounced off this threshold once on January 13 and today’s uptick is effectively confirming the importance of this price level.

If the price stays above $170 in the next couple of days and rises sharply off this area, this would confirm a double-bottom pattern.

A double-bottom is a high-probability bullish setup that occurs when buyers show up en masse to scoop up the asset once it has touched a specific price level.

Momentum indicators have not yet confirmed the pattern’s bullish bias, as the Relative Strength Index (RSI) is still standing 17% below the signal line. The MACD’s histogram has also not yet shown signs that negative momentum is decelerating.

The next few days will be critical for SOL, as a confirmed bounce off this area could propel the price to $200 – the closest area of resistance – resulting in a 17% upside potential.

At today’s levels, this trade offers the highest risk/reward ratio possible. Aggressive traders could set a stop loss at around $165 resulting in an RR ratio of around 4.8, while the most conservative ones could set a stop-loss at $158 – below the February 18’s session lows – for a lower RR ratio of around 2.2.

Solana’s DeFi Ecosystem is Growing Fast

The rise of meme coins like Official Trump ($TRUMP) and Melania Meme Coin ($MELANIA) have helped the network take in significant inflows of stablecoins since the year started.

Data from DeFi Llama shows that Solana’s decentralized finance ecosystem has attracted $3.2 billion worth of USDT and USDC primarily in 2025, resulting in a 37.3% increase in the network’s stablecoin balance in just 50 days.

Protocols like Jito and Jupiter have also experienced a significant jump in their total value locked (TVL) despite the retreat that the value of the SOL token has experienced lately.

By the end of 2023, Jito had a TVL of around $700 million. A year later, its TVL expanded to $2.8 billion, resulting in a 300% 12-month jump.

Meanwhile, back when Jupiter was launched in February 2024 its TVL stood at $210 million. That same figure is now standing at $2.53 billion, for an even more staggering 1,100% spike.

Similarly, Raydium, the largest decentralized exchange of the Solana ecosystem, saw its monthly fees rise from $20 million in January 2024 to $295 million in January this year, as the launch of $TRUMP in the Solana network kicked off a spike in the exchange’s trading volumes.

Excluding that isolated event, the exchange also saw its trading volumes skyrocket in December last year to $61 billion. This implies a 517% jump compared to the previous year.

These numbers indicate that the Solana ecosystem is growing at an unprecedented pace, and it provides evidence that this latest weakness in the market value of SOL could be a handsome opportunity to buy the token at a bargain price.