Why Is Solana (SOL) Price Up Today?

According to Cointelegraph: Solana (SOL) has surged over 6% in the last 24 hours, bolstered by several technical and on-chain factors that point to continued bullish momentum. The broader cryptocurrency market recovery, led by Bitcoin's rise to 2021 record highs, has also contributed to Solana's price growth.Solana’s TVL Hits 30-Month HighOne of the key drivers of Solana’s price increase is the growth in its Total Value Locked (TVL). According to DefiLlama, Solana’s TVL surged to $6.4 billion as of October 21, marking a 348% year-to-date increase. This rise in TVL shows Solana’s growing appeal among decentralized finance (DeFi) users and highlights its ability to attract new projects due to its low transaction costs.For comparison, Solana’s average transaction fee sits at 0.000091 SOL (approximately $0.015), much lower than Ethereum, where fees hover around $0.5286. This cost efficiency has been a key factor in driving the TVL and on-chain activity for Solana.Memecoin Hype Returns to SolanaAnother factor contributing to Solana's bullish performance is the resurgence of memecoins within its ecosystem. CoinGecko data shows that there are now more than 610 memecoins built on Solana, and their recent price rallies have fueled broader interest in the network.This memecoin revival coincides with increased on-chain activity and developer engagement. Data from the Solana Foundation and Electric Capital’s Developer Report show that Solana's developer count has steadily increased throughout 2024, reaching 2,856 active monthly developers by July 1, 2024.The influx of memecoin projects and heightened developer activity are boosting demand for SOL, further supporting the price increase.SOL Price Breakout Potential: Inverse Head-and-Shoulders PatternFrom a technical analysis perspective, Solana's price is showing signs of a bullish breakout. SOL/USD is currently trading above the neckline of an inverse head-and-shoulders (IHS) pattern, a bullish reversal setup. After breaking the neckline at $163 on October 20, the level has flipped into support, suggesting that Solana may hold its gains and push higher.The potential breakout target for this pattern is $207, a 24% increase from Solana's current price. Additionally, the relative strength index (RSI) remains elevated at 66, indicating that buyers maintain control in the market.Broader Market Rally Boosts SolanaSolana’s price rally is also supported by the broader cryptocurrency market's upward momentum. Bitcoin’s rise to near $70,000 has sparked optimism across the market, with other top cryptocurrencies like Ethereum (ETH) and Cardano (ADA) seeing gains of 3-4%. Meanwhile, ApeCoin (APE) led mid-cap growth with a 21% increase following the launch of its ApeChain network.Solana's performance is largely tied to this overall market optimism, fueled in part by the impending U.S. presidential elections, which traders expect could result in favorable cryptocurrency regulations if Donald Trump wins.Solana Eyes Further GainsSolana’s price increase today is driven by a combination of strong technical indicators, rising TVL, and growing interest in memecoins. With favorable on-chain factors and the broader market momentum, SOL looks poised for further gains, with a potential target of $207 if the current bullish trends continue.