The Rise of Solana: Will It Reach $200 Soon?
The current state of the crypto market is experiencing a decline. Bitcoin price has plummeted and is now trading below $70,000. This downward trend has also affected other altcoins, such as Ethereum (ETH), which has seen a decrease of approximately 7% and is now trading below $4,000. In comparison to Cardano, XRP, Dogecoin, and Shiba Inu, whose overall performance has been lagging, Solana has shown promising market performance. Despite a slight dip in price within the last 24 hours, it has demonstrated a 20.3% increase over the course of the week. However, it is important to note that the market is highly volatile, and sudden changes are always possible. In light of these circumstances, the question remains whether Solana’s price will reach $200 in the near future.
Market Performance of Solana Price
Solana (SOL) price has been volatile today, dropping to $160.23 and rising to $186.19. Despite facing downward pressure from the overall crypto market, SOL dipped by 2.5 percent before quickly rebounding. Currently trading at $180.05, Solana is the only major cryptocurrency that has recovered. With a market cap of 79.78 billion, Solana holds the 5th position in the market according to CoinMarketCap. The token has experienced a surge in trading activity, depicted by an increased trading volume of 13.5 billion by 77% over the last 24 hours.
Why is Solana Price Rising?
The increase in price has come after Binance announced its integration of the Solana network into its Binance Web3 Wallet, enhancing user experience and accessibility to Web3. This integration aligns with Binance’s goal of creating a multi-chain, self-custodial wallet to meet diverse Web3 needs. Users can now send, receive, and swap tokens on the Solana network and access various Solana-based decentralized applications (dApps) through the wallet interface.
Ten Solana-based dApps have been added to Binance Web3 Wallet, with more to come in the future. The introduction of the ‘dApp Hub’ streamlines the user experience by consolidating all trending dApps into one tab, making it easier for users to explore and interact with different dApps securely. This UI overhaul aims to provide a convenient and accessible way for users to engage with the Solana ecosystem and other blockchain networks supported by Binance Web3 Wallet.
Factors That Could Propel SOL to $200
SOL Vertical Accumulation
A cryptocurrency analyst, Bluntz, is optimistic about Solana (SOL) as it appears to be in an accumulation phase and poised for growth. The price of Solana has been rising since hitting a low in January, currently trading at $180, up over 700% year-to-date. The analyst, known for using Elliott Wave Theory, believes that the cryptocurrency is showing signs of vertical accumulation, indicating potential for further price increases.
Elliott Wave Theory suggests that market trends unfold in repetitive cycles driven by investor psychology. These cycles typically consist of a five-wave progression in the direction of the prevailing trend, followed by a three-wave corrective phase. The theory is based on identifying recurring fractal wave patterns that reflect the psychology of the masses.
Memecoins Success
The remarkable success of meme coins on the SOL network cannot be overlooked. The prominent memecoin giants, WIF and BONK, are continuing their upward trajectory. Clay Robbins, co-founder of Colosseum, emphasized the popularity of memecoins on Solana, attributing it to their enjoyable nature and easy accessibility.
Tristan Frizza, the CEO of Zeta Markets, believes that Solana’s surge amidst a general decline in cryptocurrency prices is not a mere coincidence. Instead, it signifies the increasing interest in the platform. The rise of the SOL blockchain is not solely speculative but is supported by genuine user engagement. With the growth of transaction volumes and the emergence of DeFi applications, Solana’s potential has only strengthened further.
Surge in Total Value Locked and Airdrop Anticipation
According to DappRadar data, there has been a 13% rise in the total value locked on the Solana network in just one week, along with a 24% uptick in protocol volumes. The futures trading of SOL still shows favorable funding rates, indicating that traders are optimistic about their leveraged positions.
On another note, Coinbase’s focus on an upcoming airdrop for the Geo Boden (BODEN) token is generating enthusiasm within the Solana network. Strong fundamentals and growing market interest are boosting the confidence of SOL Coin investors.
Solana Price Forecast
Lokesh, another analyst asserts that Solana’s price is showing a U-shaped recovery on the daily chart, indicating a cup and handle pattern formation. This pattern suggests a potential shift from a downtrend to an uptrend for the asset. The pattern is influencing the $SOL price, projecting a stable bullish trend soon. Solana’s breakout above the neckline resistance of the pattern is a significant departure from nearly two years of sideways movement. If the pattern holds, buyers may aim for a target of $250, but there is concern about a possible retracement driving the price below the neckline support at $125. Key levels to watch are the resistance level at $174-$180 and the support level at $163-$156.
Conclusion
Solana’s ability to withstand the cryptocurrency market’s recent decline highlights its resilience and growth potential. Despite market fluctuations, SOL has consistently shown strong performance, supported by several factors that suggest a positive outlook. Although challenges such as market volatility and resistance levels persist, the overall sentiment remains optimistic regarding Solana’s path towards reaching the $200 milestone. It is crucial to monitor key levels for any potential changes in momentum.
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