Solana on May 26, 2025: Will the Bullish Trend Persist?

Analysis of Solana on May 26, 2025, focusing on DeFi growth, institutional activity, and price trends

On May 26, 2025, Solana (SOL), a leading cryptocurrency, experienced notable developments that captured the attention of investors and analysts. SOL traded between $177 and $180, reflecting a 1.61% increase over the past 24 hours. These price movements were driven by a combination of surging DeFi activity, institutional selling pressure, and network upgrades. A key factor was the significant growth in trading volume on Solana-based decentralized exchanges (DEXs). Reports indicate that platforms like Sanctum and Raydium saw a 90% increase in trading volume over the past month. This has boosted demand for SOL, as the token is used to pay transaction fees within the Solana ecosystem. Additionally, the total value locked (TVL) in Solana’s DeFi protocols rose by 25%, reaching over $5.86 billion. However, institutional selling pressure was evident. High-volume sales of SOL late on May 25 pushed the price below the $172 support level, raising concerns about a potential correction. Analysts suggest that a break below $170 could drive prices toward $160. Technically, Solana is trading near its 50-day moving average, which acts as support. The RSI at 54 indicates fading bullish momentum but remains in neutral territory. Breaking the $190 resistance could push prices to $200 or even $220, though current selling pressure tempers this possibility. Fundamentally, recent announcements about the Alpenglow upgrade, aiming to reduce transaction finality to 100-150 milliseconds, have fueled market optimism. This could position Solana as one of the fastest blockchains, enhancing its appeal for DeFi and NFT applications. Additionally, a $500 million investment by SOL Strategies to acquire SOL reflects strong institutional confidence in Solana’s long-term potential. However, the SEC’s delay in approving a Solana ETF until October 2025 has made some investors cautious. Despite this, 82% of investors remain optimistic about ETF approval by year-end. Overall, Solana shows short-term bullish potential, but investors should be wary of selling pressure and macroeconomic factors. Risk management and close market monitoring are critical for informed investment decisions.