The Solayer token has surged nearly 30% over the past week. This performance comes after a period of accumulation, suggesting potential for further upward momentum. Let us see what’s behind this price action and what might come next.
Solayer is an advanced restaking protocol built on the Solana blockchain. It officially launched on February 11, 2025. The platform is designed to enhance network security, scalability, and decentralized application performance. Solayer allows users to restake their SOL tokens or liquid staking tokens to secure additional decentralized services while earning rewards, ultimately improving the efficiency and liquidity of the Solana ecosystem.
Some Factors Behind Solayer Recent Price Performance
LAYER has been steadily climbing from recent lows, now reclaiming the $0.96 level. The price action appears strong following an extended period of accumulation. The inclusion of SOL in the Crypto Strategic Reserve has provided additional support for the Solana ecosystem, benefiting Solayer as well.
From a narrative perspective, many analysts still consider LAYER undervalued. Solayer hardware offloading approach to network scaling stands out as unique, enabling potential transaction speeds of up to 1 million TPS.
Read Also: Here’s Why Solana (SOL) Could Surge 10x in the Bull Run
The project is currently developing infiniSVM, a hardware-accelerated SVM that aims to scale Solana indefinitely to achieve 100 Gbps with SDN and RDMA. Recent on-chain activity has also fueled interest, with reports of a new address accumulating 6 million LAYER tokens, making it the 6th largest holder on the chain.
LAYER Price Could Be Ready for a Big Move
Technical analysis of the LAYER/USDT trading pair on Binance by MasterCryptoHq, reveals a classic “cup and handle” pattern, which is typically a bullish continuation pattern. The cup formation shows a rounded bottom, followed by a handle that represents a slight pullback or consolidation before a potential breakout.
The price is currently testing a resistance zone around $0.90-$0.95. A breakout above this level could confirm an upward movement. Adding to the bullish case, a diagonal resistance trendline has been broken, suggesting increasing momentum, with the price currently retesting this breakout level.
Looking at potential targets, Fibonacci extension levels indicate several key resistance points that could be reached if the uptrend continues: $1.05, $1.16, $1.25, $1.32, $1.52 (major target) and $2.08 (long-term target)
For confirmation of this bullish outlook, traders should watch for strong volume accompanying any breakout. If rejection occurs at resistance, a pullback to support in the $0.85-$0.90 range may happen before another breakout attempt.
