These measurements suggest that $100 was the bottom of the area
Solana (SOL) price could be as low as $100 on multiple time frames, this setup could help SOL price recover to $260 in the long term.
Main Receptors:
SOL should break several resistances before $260.
SOL's price action has led to a V-shaped recovery pattern on the four-hour chart.
This followed a sharp decline that saw SOL price drop 25% from its high of $127, which was stopped by buyers around the $100 support level.
Related: ParaFi Capital makes $35M investment in Solana-based Jupiter
The Relative Strength Index (RSI) rose from oversold conditions at 18 to 36 in the four-hour time frame, indicating some upward momentum.
The daily RSI is oversold at 29, a level that previously marked a market low and triggered SOL price reversals.
Related: ‘Too Wide Gap' Between XRP and Solana Investor Interest: Exec
As the bulls hope to complete the V-shaped pattern, the price will face key obstacles on its recovery path, including the $113-$115 supply band where some key trend lines intersect.
The second area of interest is the $125-$130 supply zone defined by the 50-day EMA and 50-day SMA.
Further, the SOL/USD pair may rise further towards the neckline of the pattern around the $150 supply zone, which would represent a 44% breakout from the current price.
Zooming in, the weekly chart shows strong support for SOL at $95-$100 as shown below.
The last correction from this level triggered a 166% SOL price rally from $95 to $250 between April 2025 and September 2025.
If the same scenario unfolds, SOL could extend today's recovery to $260 in the coming weeks or months, representing a 150% upside from current levels.
The 50-week MAs are sitting between $140-160, a zone that has historically delayed price rallies as resistance.
Trader Tardigrade said that SOL's move down from the lower bound could lead to a rise to the upper bound of $215.
According to Cointelegraph, if the 20-day EMA at $106 returns as support, the price of SOL may rise to $120-$150.
Solana TVL and network activity increases
Solana's main decentralized application (DApp) benchmark started showing strength in mid-January.
The network's total value locked (TVL), which measures the amount invested in its smart contracts, hit a record high of 73.4 million SOL on Monday, at $7.5 billion at current prices. This represents an 18 percent increase over the previous week.
The last time this measure hit a daily high was in June 2022, when TVL topped $68.3 million SOL. This increase was largely fueled by high network activity and NFT growth on Solana in 2021. This was accompanied by an 80% gain in SOL prices between June and August 2022.
Additionally, the daily transaction count on Solana on Monday hit a two-year high of 109.5 million.
Daily DEX volume hit an eight-month high of $51.3 million SOL on Monday, while weekly DEX trading volume hit a 12-month high of $264.8 million SOL by the end of the week on Sunday.
According to Cointelegraph, daily active addresses on Solana showed an increase of 115% in the second half of January, which is historically the best price for SOL going forward.
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