Solana Price Continues to Rise Alongside Bitcoin
The native token of the Solana ecosystem, SOL, has been experiencing gradual growth in line with Bitcoin. In late January, SOL began a recovery trend after bouncing back from $79. Over the course of seven weeks, the price of SOL increased by 87.55% to reach $147.7, with a market cap of $65.6 billion, making it the fifth-largest cryptocurrency.
However, there is a possibility of another pullback before SOL can rally past the psychological level of $150 due to overhead supply.
Will Solana Price Be Able to Sustain Above $150?
The current recovery trend in Solana price faced a major obstacle at $150, as indicated by the rejection candle with a long wick in the daily timeframe. This overhead supply is caused by short-term traders booking their profits, which may lead to a correction and a drop in price to $125.
Prior to this, the $125 level acted as the key neckline resistance of the cup and handle pattern, which is commonly observed at market bottoms and indicates an early sign of a recovery trend. If this retest holds true, it would provide buyers with strong support to drive a higher recovery trend.
If the pattern continues to play out, the potential target for Solana price could be $250, representing a potential growth of 71%.
Solanaโs New Addresses Metric Reaches Record Highs
Recent data from The Block shows a significant increase in Solanaโs network activity through the surge in new addresses. New addresses are crucial indicators of both network adoption and user engagement. Starting from a low point of 660,000 on February 25th, the network has experienced robust growth, reaching a new high of 717,000 new addresses. This growth highlights the expanding user base and the growing appeal of Solana as a blockchain platform.
Technical Indicators
- BB Indicator: The Bollinger Band indicator suggests an upward movement, indicating that buyers are dominating the price trajectory of SOL.
- Relative Strength Index: The daily RSI slope stands at 68%, reflecting a bullish market sentiment.
Hot Take: Solanaโs Potential for Growth and Adoption
Solana has shown significant potential for growth and adoption in recent months. With its native token, SOL, experiencing steady growth alongside Bitcoin and the network seeing an increase in new addresses, Solana is becoming an increasingly attractive blockchain platform.
If the recovery trend continues and SOL can sustain above $150, there is a possibility of further price appreciation. The cup and handle pattern indicates a potential target of $250, presenting a promising opportunity for investors.
Additionally, the growing network activity and expanding user base demonstrate the increasing adoption of Solana as a preferred blockchain platform. As more users engage with the network and utilize its features, Solana has the potential to become one of the leading players in the crypto space.
Overall, Solanaโs performance in terms of price growth and network activity positions it as an asset worth considering for both short-term traders and long-term investors.
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