Solana (SOL) price surges 7% to reach $140 amid broader market recovery

This price jump comes with a sharp increase in trading activity, as daily volumes surged between 85% and 94.9% to reach over $2.56 billion.

Solana (SOL) price is showing signs of strength as it extends gains to trade above the $138 level. This move has technical relevance as it cancels a persistent downtrend from January 20th highs.

What Happened: On-chain data from Cryptoquant shows that the number of Solana addresses now exceeds 11.09 million, reaching a record high in user participation within the ecosystem.

This surge in user activity comes as long-term Solana holders are showing signs of extreme fear, according to crypto analyst Ali Martinez.

Periods of uncertainty often create opportunities for strategic investors, and Martinez adds that such instances are classic examples of the investment wisdom to "be greedy when others are fearful."

"Periods of extreme fear among long-term holders have historically been periods of opportunity for strategic investors. These are the moments smart money steps in, aiming to capitalize on fear-driven market reactions. It's a classic concept in investing, to 'be greedy when others are fearful, and fearful when others are greedy.' In the case of Solana, a new all-time high in the number of addresses used within the ecosystem have been recorded, with over 11.09M addresses currently holding the SOL token. This coincides with a surge in daily volumes, which increased between 85% and 94.9% to reach over $2.56 billion. This surge in volume is a significant factor in the recent price recovery of Solana, as it indicates strong buying pressure and interest from traders. As the cryptocurrency market continues to recover, we can expect to see further increases in trading activity and price volatility in the coming days and weeks," Martinez said.

Related Link: Why Solana Price Could Extend Rally By 15%

Technical Analysis: According to technical analysis, Solana has broken through a crucial resistance level at $137, which could be pivotal in determining the near-term trend.

A breakout above this level has potential to negate a persistent downtrend from January 20th highs, paving the way for a continuation of the recent rebound from yearly lows.

This technical breakout sparks optimism among market analysts, with popular analyst Crypto Curb suggesting that this move signals the start of new upward momentum for SOL. Forecasts point toward a potential rally toward the $420 level in the near future.

Another analyst, Satoshi Flipper, identified a symmetrical triangle pattern on Solana's 4-hour chart. This pattern typically signals a continuation of the previous trend once price breaks out of the formation.

With SOL closing above the upper trendline at $132, the analyst projects a price target of around $152.

$SOL/usdt 4 hour

Big breakout soon for $SOL 🚀🚀 pic.twitter.com/pYriqopzU1

— Satoshi Flipper (@SatoshiFlipper) March 22, 2025

The technical outlook remains positive as SOL extends its gains to trade above $138. The Relative Strength Index (RSI) on the daily chart is recovering from oversold conditions and reads 49, pointing upward just below its neutral level of 50, indicating weakening bearish momentum.

Further support for this upward movement comes from the Moving Average Convergence Divergence (MACD) indicator, which showed a bullish crossover last week. This technical signal suggests more upside potential ahead.

In other news, the White House is narrowing its approach to tariffs set to take effect on April 2, according to a report by the Wall Street Journal.

The plans will likely omit a set of industry-specific tariffs while applying reciprocal levies on a targeted set of nations that account for the bulk of foreign trade with the U.S.

This news has set a positive tone in the crypto market during early Asian trading on Monday. Bitcoin broke above the $87,000 level, and Solana followed the upward trend with a gain of about 7%.

Solana co-founder Anatoly Yakovenko has expressed skepticism about the necessity of Layer 2 scaling solutions.

According to Yakovenko, Layer 1 blockchains can deliver superior performance with greater speed, lower costs, and enhanced security compared to Layer 2 alternatives.

"L1s can be faster, cheaper, and more secure. They aren't slowed down by a glacially moving L1 data availability stack, or have to compromise security with complex fraud proofs and upgrade multisigs," Yakovenko stated in a message on the X platform.

His comments were in response to an Ethereum contributor who suggested there's no reason to build Layer 1 solutions when Layer 2s are faster and more affordable.

In an interesting development for the Solana ecosystem, former President Donald Trump posted support for the TRUMP memecoin on Solana via his Truth Social platform on Sunday.

Trump wrote, "I LOVE $TRUMP—SO COOL!!! The Greatest of them all!!!!!!!!!!!!!!!!”

This endorsement led to a spike in Trump meme