🚀 Crypto Crazy Breakout Ahead? Solana Eyes $400-$500 as Staked SOL Hits $8 Billion

[Undefeated_Lamba]

Solana’s real economic value reached 111% of Ethereum’s in October, driven by DeFi growth and innovative projects like Hivemapper and Helium.

Solana (SOL) has surged 36% in recent weeks, reaching $213. However, it now faces a critical test at the $221 resistance level. Recent data highlights strong network activity and staking growth, but questions remain about sustaining the momentum.

The Solana network has seen a sharp rise in decentralized exchange (DEX) volumes. Data from DeFiLlama shows daily DEX trading surpassed $5 billion for three consecutive days last week, totaling $16 billion between November 10 and 15. Raydium contributed 62% of this activity, followed by Orca with 22%.

Staking activity is also driving optimism. Over $8 billion worth of SOL is now staked, effectively reducing selling pressure and boosting price stability. This marks one of Solana’s strongest metrics during its current rally.

Staked SOL|Source: DefiLlama

Technical indicators support the trend. According to TradingView data, the average directional index (ADX) for SOL stands at 32, well above the 25 threshold that signals a strong trend.

SOL/USDT Chart| Source: TradingView

Solana appears to follow an upward trajectory, but it has failed to overcome the $221 barrier price for some time now. If that level remains, it is believed that the price could range between $201 and $221 over the short term. Any price pullback below $201, likely led by profit-making, is likely to signal a probable reversal of the bullish trend.

While increasing, on-chain transaction activity has not matched the hype around Solana ETFs and the broader market rally.

Glassnode data shows Solana recently hit a yearly transaction high, but the numbers remain moderate compared to expectations. Sustained growth may require higher user engagement.

SOL Transactions Count|Source: Glassnode

Solana’s decentralized finance (DeFi) ecosystem remains a bright spot. Meme coin trading has driven $1 billion in daily volume, highlighting the network’s growing appeal among retail traders.

According to Syncracy Capital, Solana’s real economic value (REV) hit 111% of Ethereum’s in October, up from just 1% a year ago. Application revenue has also grown, reaching 109% of Ethereum’s total.

The network’s impact extends beyond DeFi. Projects like Hivemapper, which has mapped 28% of global roads, and Helium, with its 20,000-device network, are leveraging Solana’s infrastructure to scale operations efficiently. These developments showcase the network’s versatility.

Solana’s Outlook​

With robust staking, growing transaction volumes, and strong technical indicators, Solana has built a solid foundation for further growth. However, breaking the $221 resistance remains critical for upward movement.

The huge cup-and-handle formation on Solana’s chart adds to the bullish developments, with possible medium-term targets between $400 and $500.

SOL Cup & Handle Formation|Source: TradingView

This technical formation, defined by a rounded recovery accompanied by a consolidation handle, is highly bullish and reinforces a breakout.

Should SOL break the key $221 resistance level, the breakout may unlock superior prospects for further advancements in line with increased investor attention and network demand.