Solana (SOL) is making waves in the crypto market as its price edges closer to its all-time high, fueled by record-breaking decentralized exchange (DEX) volumes and strong on-chain fundamentals. On November 18, SOL reached a yearly high of $248.44, marking its second-highest weekly close since its peak in November 2021. Now trading just 8% below its all-time high of $260, analysts are closely watching Solana’s technical patterns for signs of a potential breakout that could push the price toward $400.
With growing investor confidence and a thriving ecosystem, Solana is emerging as one of the most dynamic players in the blockchain space. This article explores the key on-chain metrics, technical patterns, and market sentiment driving Solana’s momentum—and why experts believe a new price discovery phase may be underway.
Record DEX Volume Signals Strong Network Activity
While Solana hasn’t experienced the same parabolic surge as assets like XRP or ADA in recent weeks, its underlying network activity tells a compelling story. According to DefiLlama, Solana’s weekly DEX volume surged to a record $41.2 billion—more than doubling its previous all-time high of around $18 billion seen earlier in 2024.
This explosive growth reflects robust user engagement and increasing adoption of Solana-based decentralized finance (DeFi) platforms. In fact, Solana now accounts for 48.27% of total DEX volume across all blockchains over the past 24 hours—outpacing major networks like Ethereum, BNB Smart Chain, Arbitrum, and Base combined.
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To put this into perspective, Ethereum—the long-standing leader in DeFi—peaked at $37 billion in DEX volume during May 2021. Despite the DeFi and NFT boom at the time, ETH never managed to reclaim its all-time high against Bitcoin (BTC), which it first achieved in June 2017. As crypto analyst Aylo pointed out, if Solana can surpass its previous ATH against BTC, it would accomplish what Ethereum could not in the last market cycle.
This comparison highlights not only Solana’s technical strength but also its potential for outperformance in a maturing multi-chain ecosystem.
Bullish Cup-and-Handle Pattern Hints at $400 Target
One of the most compelling technical signals comes from the monthly chart, where independent on-chain analyst Titan of Crypto identified a classic cup-and-handle pattern—a bullish formation known for its high success rate and strong upside potential.
Historically, cup-and-handle patterns have a 95% success rate, with an average profit target of +54% following a confirmed breakout. In Solana’s case, the pattern suggests that once SOL breaks above its current all-time high of $260, the next logical price target could be **$400**.
The structure of the pattern is clear:
- The “cup” formed over several months of consolidation.
- The “handle” represents a shallow pullback, indicating healthy profit-taking without reversing the trend.
- The recent upward momentum signals a potential breakout phase.
This long-term bullish setup underscores sustained accumulation and growing institutional interest. Unlike short-term price spikes driven by speculation, this pattern reflects structural strength in Solana’s market dynamics.
Another analyst, Jelle from CryptoJelleNL, noted that Solana has successfully turned previous yearly highs into strong support levels—a sign of maturing price action and increasing market confidence.
On-Chain Data Confirms Strong Spot Demand
Beyond technical charts, on-chain metrics further validate Solana’s bullish narrative. Data from CoinGlass reveals positive spot inflows for SOL, meaning more investors are buying and holding the asset rather than selling or shorting it.
Among the top 10 cryptocurrencies (excluding stablecoins), only Bitcoin has seen stronger spot buying pressure than Solana. This kind of organic demand—driven by retail and institutional investors alike—suggests growing recognition of Solana’s utility and long-term value proposition.
Key factors contributing to this demand include:
- Rapid transaction speeds and low fees
- A booming NFT and DeFi ecosystem
- Increasing adoption by mainstream applications and fintech platforms
These fundamentals make Solana not just a speculative asset but a functional blockchain powering real-world use cases.
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Why Solana Could Outperform in 2025
As we look ahead to 2025, several catalysts could propel Solana beyond $400:
- Ethereum upgrade delays: While Ethereum continues to scale via Layer 2s, network congestion and high fees persist, pushing developers and users toward faster alternatives.
- Institutional interest: Major financial players are beginning to explore Solana-based products, including ETF proposals and custody solutions.
- Developer momentum: With over 1,300 active projects building on Solana, innovation remains at an all-time high.
Moreover, Solana’s ability to maintain high throughput during peak usage—such as NFT mints or meme coin launches—demonstrates superior scalability compared to older blockchains.
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Frequently Asked Questions (FAQ)
Q: What is a cup-and-handle pattern?
A: It’s a bullish technical formation where an asset forms a “U” shape (the cup), followed by a small pullback (the handle). A breakout above the handle’s resistance often leads to significant upward momentum.
Q: Is Solana’s DEX volume really higher than Ethereum’s?
A: Yes—on a weekly basis, Solana recently hit $41.2 billion in DEX volume, surpassing Ethereum’s previous peak of $37 billion in 2021. This reflects growing trader preference for fast and low-cost networks.
Q: Can Solana reach $400?
A: While no price target is guaranteed, the cup-and-handle pattern suggests a +54% move post-breakout. If SOL clears $260, $400 becomes a statistically plausible target based on historical pattern performance.
Q: What drives Solana’s price growth?
A: Strong network fundamentals—including high DEX volume, active development, low transaction costs, and increasing spot demand—are key drivers behind Solana’s sustained price appreciation.
Q: How does Solana compare to other Layer 1 blockchains?
A: Solana stands out for speed (50,000+ TPS), low fees (<$0.01 per transaction), and developer-friendly tools. These advantages attract DeFi, NFT, and Web3 projects looking for scalable infrastructure.
Q: Should I invest in Solana?
A: This article does not provide financial advice. Cryptocurrency investments carry significant risk, including the potential loss of capital. Always conduct independent research and consider your risk tolerance before investing.
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Final Thoughts
Solana’s combination of technical strength, on-chain activity, and ecosystem growth positions it as a leading contender in the next phase of the bull market. The recent breakout of its cup-and-handle pattern—supported by record DEX volumes and strong spot inflows—suggests that a move toward $400 is not just possible, but increasingly probable.
While past performance doesn’t guarantee future results, the data paints a compelling picture: Solana is no longer just chasing highs—it’s building the foundation for new ones.