Solana Reclaims the $180 Mark for the First Time Since Mid-February

Solana's price rose sharply on Tuesday, reclaiming the $180 mark for the first time since mid-February as Pump.fun announced a new 50% revenue-sharing initiative for coin creators.

The announcement, which has garnered over 1.7 million views, appears to be drawing fresh speculative and builder-driven interest to the Solana ecosystem.

This move appears poised to drive adoption and incentivize continuous token launches across the network.

Solana Surges 22% in a Week as Pump.fun Announces 50% Revenue Sharing

Solana broke above the crucial $180 resistance level on Tuesday, marking a significant recovery from recent price declines.

The move comes as Pump.fun, a popular platform on the Solana blockchain, announced a new initiative to share 50% of its trading fees with coin creators.

According to the announcement, which has garnered over 1.7 million views on X (formerly Twitter), Pump.fun will distribute 0.05% in SOL per trade to eligible creators.

The model includes all coins actively trading, newly created, or those graduated to PumpSwap, further reinforcing Solana's role in the growing creator economy.

This appears to be drawing fresh interest in the ecosystem, with viewers engaging in lively discussions about the implications and potential impact on the network's growth.

Solana's price has slid 71% from its all-time high reached in late 2021. However, the recent surge in price could indicate a shift in market sentiment.

Solana's DEX Activity Outpaces Major Competitors

Market participants responded swiftly to the news.

Solana has seen an influx of derivatives capital in recent days, with SOL open interest on Coinglass surging 8.43% on Tuesday to reach $7.40 billion.

Although trading volume dropped by 18.26% to $16.13 billion, the rise in open interest suggests sustained positioning rather than short-term exits.

Solana is known for its high levels of DEX activity, which continues to dwarf other blockchains by a wide margin.

Over the past seven days, Solana posted $22.4 billion in DEX volume, more than double the second-highest chain at $10.8 billion (Ethereum).

Other major blockchains like BSC, Base, and Arbitrum are lagging behind with volumes ranging from $2.3 billion to $3.9 billion.

Solana's DeFi metrics also show strong growth with total value locked increasing from $7.5 billion at the beginning of May to $9.6 billion at the time of writing, according to DeFiLlama data.

Leading platforms within the ecosystem have shown remarkable growth. Marinade is up 56%, Jito rose 41%, and Raydium saw a 78% increase in TVL.

Chain activity remains robust with revenues and transaction fees steadily climbing for four weeks, approaching three-month highs.

With approximately 65% of SOL staked, the combination of growing DeFi usage and limited circulating supply could support further price growth.

However, not every metric points to continued upside. Solana's overall stablecoin market capitalization dropped by 8% to $11.7 billion in the past seven days.

The high funding rate of 8% indicates that traders are paying a premium to hold long positions, which often precedes short-term price corrections.

Technical Indicators Show Mixed Signals

Solana is trading well above all major moving averages, with the 10, 20, 50, 100, and 200-day indicators all displaying “buy” signals, confirming the strength of the current uptrend.

The daily candle structure shows consistent closes above the Keltner Channel basis line, reinforcing strength in the current movement. SOL is trending near the upper band of the Keltner Channel, suggesting that a breakout attempt toward the $190-$195 range remains technically valid.

The presence of wide-bodied bullish candles since May 9, supported by increasing volume, highlights renewed buyer conviction. The Parabolic SAR at $154.80 remains well below the current price, indicating trend strength is intact.

However, bearish signals have begun to appear. The 4-hour chart analysis shows a clear bearish divergence forming in the $180-$185 range, which could signal buyer exhaustion.

The Relative Strength Index (RSI) stands at 71.83, indicating overbought conditions that may cap short-term upside potential. The Bollinger Bands are widening with SOL trading near the upper band, typically preceding a period of correction or consolidation.

Derivatives Data Points to Increased Market Interest

Coinglass derivatives trading data show increased capital inflows within Solana markets. On Tuesday, SOL open interest jumped 8.43% to $7.40 billion, showing new capital