The technical indicators and record-breaking trading volumes on Solana-based decentralized exchanges (DEXs) are providing strong support for a bullish outlook on Solana (SOL), particularly in its pairing with Bitcoin (BTC). This alignment of price trends and blockchain activity suggests a promising future for SOL in the coming weeks.
Price Breakout Signals Uptrend
The SOL/BTC ratio saw a notable increase of over 1% last week, breaking out of a period of consolidation, known as triangular consolidation in technical analysis. This price movement signifies that the bullish momentum is finally taking control, after months of a stalemate with bears. This breakout hints at the beginning of a sustained uptrend for SOL/BTC.
The Moving Average Convergence/Divergence (MACD) indicator, which helps to gauge trend strength and potential reversals, has crossed above zero, reinforcing the shift towards bullish momentum.
Strong Fundamentals Behind the Breakout
While there is ongoing debate about whether Solana will surpass Ethereum as the leading smart contract blockchain, one undeniable fact is Solana’s strong position in the retail sector, particularly in the memecoin trading space. This is evidenced by the surge in trading volumes, which supports a bullish outlook for SOL.
Solana-based DEXs have seen a dramatic rise in trading volume, registering a record $41.6 billion in the seven days leading up to November 17—more than double the previous week’s activity. This marks the highest volume ever recorded for Solana’s DEXs, according to data from Artemis.
Notably, Solana’s DEX activity outpaced the combined volumes of Ethereum, Base, and Binance Smart Chain (BSC), which together amounted to $37.9 billion. Ethereum alone contributed $14.3 billion to this total, while Solana’s $41.6 billion trading volume dwarfs these figures.
Competitive Fee Revenue Growth
In addition to impressive trading volumes, Solana continues to show strong competitive performance in terms of fee generation. Solana’s decentralized exchange, Raydium, generated $72.83 million in fees over the past week—8% more than Ethereum’s $67 million in fees. In contrast, Bitcoin’s fee revenue for the same period stood at around $15 million. This demonstrates Solana’s growing strength in the decentralized finance (DeFi) space, even as it remains a more cost-effective alternative to Ethereum.
The combination of technical indicators, rising trading volumes, and robust fee generation positions Solana (SOL) as a major contender, especially in the competitive blockchain ecosystem.
