Solana Bulls Charge Toward $180 Breakout—Can SOL Defy Gravity Again?

Solana’s native token SOL revs its engines as traders target a decisive push past $180—a level that could trigger algorithmic buying frenzies and liquidate overleveraged shorts. The Layer 1 blockchain, often dubbed ’the Ethereum killer’ (despite still processing fewer transactions than Visa), has rallied 40% this month alone.

Technical indicators flash bullish: SOL just breached its 200-day moving average, while exchange reserves hit a 3-month low—suggesting holders are hoarding for higher prices. But skeptics whisper warnings about Solana’s history of network outages and the fact that 60% of its TVL still comes from degenerate meme coins.

As one hedge fund manager quipped: ’Nothing fuels crypto rallies like a mix of FOMO and selective amnesia about last year’s 90% crashes.’ Buckle up.

The clock’s ticking

At this point, Solana’s undervaluation is quickly becoming a bull’s playground, offering just the kind of setup that fuels strategic risk-on behavior.

The latest confirmation? A sharp drop in the NVT (Network Value to Transactions) ratio, now sitting at a two-week low. 

Source: Glassnode

In simple terms, Solana’s transaction throughput is outpacing its market cap. Hence, a sign that the chain is heating up under the hood.

But the real kicker is TVL. So far in May, Solana has added nearly $3 billion in Total Value Locked, reclaiming the $22 billion mark last seen in mid-February.

The kicker? Back then, SOL was trading 41% higher than current spot levels.

This valuation gap suggests the market hasn’t caught up with the fundamentals yet – another indication that capital deployment is still in its early stages, with much of the potential yet to be realized.

Sideline capital eyes Solana’s potential

Since Solana’s 25% weekly surge, stablecoin supply on the network has plummeted from $13.09 billion to $11.71 billion – its sharpest drop in nearly three months.

This rapid drawdown is a textbook sign of sidelined capital rotating out of stablecoins and diving into risk-on assets. 

In other words, it’s a clear indication that FOMO is starting to rear its head, with liquidity flooding into Solana. But where’s the FLOW landing?

Source: Artemis Terminal

The real signal lies in the structural demand: Addresses holding >1k SOL jumped from 22,406 to 23,009 – mid-tier whales quietly building positions.

Meanwhile, Open Interest surged from $5.45 billion to $6.60 billion, suggesting heightened speculative leverage and directional conviction.

All signs suggest Solana is coiling for its next big move. Liquidity is in place, conviction is rising, and the setup is textbook. 

If bulls breach the $180 barrier, it won’t just spark a breakout – it could trigger a chain reaction: Short liquidations, FOMO-driven entries, and a fast-track ride toward price discovery.