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Solana (SOL) demonstrated strong performance in the daily charts, as indicated by a spike in trading volume. Over the past 24 hours, Solana trading volume jumped more than 40% to over $3.1 billion, according to CoinMarketCap data.
What’s causing Solana's volume spike?
The 40% spike in Solana trading volume suggests increased network attention by both retail and institutional investors. As the SOL price showed signs of recovery, investors are gradually shifting their attention back to the coin.
After days of trading on the low, the SOL price surged 1.6% over the past 24 hours to $132.9. At the same time, technical analysis showed the formation of a golden cross, often recognized as a highly bullish pattern.
Typically, a golden cross pattern occurs when a shorter-term moving average crosses above a longer-term one. This signals that short-term momentum is outpacing the long-term trend, often preceding sustained upward price movement.
A 40% trading volume accompanying this setup strengthens the signal. This is because it indicates strong buyer conviction and increased market participation.
Earlier golden crosses seen on the Solana price chart this year contributed to rallies, pushing SOL toward $200 to $228 in various periods.
For instance, Solana breached above $200 in late October, reacting to the spot SOL ETF launch. In another scenario, SOL flipped the $220 resistance after the price formed a golden cross.
However, it is important to note that future outcomes may depend on broader market conditions. This includes the performance of Bitcoin (BTC) and macroeconomic factors.
Solana ETFs continue inflow streak
Notwithstanding that recent inflows into Solana exchange-traded funds (ETFs) have also helped to push the SOL price higher.
According to Farside Investors' data, Solana ETFs saw seven straight days of inflows totaling $674 million. This shows institutions are still buying the coin, despite recent price dips.
Other factors that also contributed to the latest rally include open interest spikes, network upgrades and integrations. Notably, the Solana Foundation recently announced that a bridge between Solana and XRP Ledger is on the way.
Solana Foundation representative Vibhu Norby explained that this bridge will allow XRP to become available in Solana dApps like a regular Solana-based asset. Simply put, XRP liquidity will be able to debut in every DeFi protocol on the Solana blockchain.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team