The Solana (SOL) price has struggled to surpass the $200 threshold this week despite significant capital inflows from the meme coin frenzy. Now, attention turns to whether the recent surge in DeFi activity can amplify the bullish momentum.

In recent days, profit-taking activities among Solana traders have kept the SOL price below the $200 mark. Nevertheless, with a surge in DeFi volumes, speculative traders are increasingly placing bullish bets in anticipation of another significant breakthrough.

Solana's DeFi Total Value Locked (TVL) is nearing $5 billion for the first time since February 2022. Despite SOL trading at $190 currently, it is poised to end the month with gains exceeding 60%. While much of Solana's March rally has been fueled by the hype surrounding native memes like Dogwifhat (WIF) and BONK, as well as new offerings like SLERF and Book of Meme (BOME), attention has shifted towards the DeFi sector in the past week.

Solana has seen a substantial increase in its DeFi TVL, despite the recent price pullback. This indicates growing confidence in Solana's DeFi protocols and suggests that investors are seeking yield or interest on their holdings within the DeFi ecosystem during the price consolidation phase, rather than exiting or taking profits early.

Speculative traders are positioning themselves for the next Solana price rally. Data from the derivatives markets shows that SOL bulls are paying higher fees to keep their long positions open, indicating increasing bullish sentiment.

Looking ahead, Solana price forecasts suggest a potential breakout towards $210 in the coming weeks. However, there is significant resistance around the $209 mark, with short traders facing potential liquidation losses of over $143 million if prices surpass $207.5. The outcome will depend on whether the growing DeFi traction persists, with bullish momentum potentially driving prices to new yearly peaks above $210. Conversely, if sell-offs trigger significant downward pressure, SOL price could retreat towards the $165 area.