Solana Sees Growth in Network and Price Action
Solana (SOL) has experienced significant growth in its network and price action since October 2023. The token’s price has surged over 368% year-to-date, reaching a high of $68. However, there may be discrepancies between the price and network progress.
Growth in Network and Price Action Fuel Optimism
According to research analyst Ally Zach, SOL has seen substantial growth. The price of SOL has increased by over six times, while active addresses and Total Value Locked (TVL) have doubled. Solana has diversified its offerings, introducing compressed non-fungible tokens (NFTs) and attracting new consumer applications.
Zach’s report shows that consumer apps were the primary entry point for first-time users on Solana, but a “breakpoint event” in early November reignited the DeFi sector. Airdrop announcements and new token launches boosted market caps and decentralized exchange (DEX) TVL, attracting users who actively trade small and mid-cap tokens.
This shift suggests a more engaged user base that could contribute to the sustainability of the Solana ecosystem.
Potential Solana Rally To $90 On The Horizon
The price of SOL also shows potential for further gains. Analyst Ali Martinez identified an ascending triangle formation on the chart, indicating a continuation pattern that often precedes upward price movements. If SOL closes above the resistance level of $68.2, it could trigger a bullish breakout towards $90.
However, caution is advised as a breach of the $60 support level may lead to profit-taking by traders and a temporary price decline. In this scenario, SOL could dip to around $47.
Hot Take: Solana’s Growth Potential
Solana has experienced significant growth in its network and price action. The token’s price has surged over 368% year-to-date, reaching a high of $68. This growth is fueled by the introduction of new infrastructure and tools, such as compressed NFTs, and the emergence of new consumer applications on the platform.
Furthermore, Solana’s shift towards a more engaged user base suggests the potential for long-term contributors, strengthening the sustainability of the ecosystem. With the potential for further gains in price, Solana could rally towards $90, but caution is advised as support levels need to be monitored closely.
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