Solana's progression towards a $200 price tag stalls amid increased transaction and account activity.
Solana's Progress Towards $200 Meets a Roadblock
The journey towards a $200 price mark for Solana encountered resistance last week, when it stalled at $185. On Sunday, May 25, Solana traded at $173.62, registering a 0.99% decline. This was a 7.25% drop from the month's high, but a notable 82% increase from its lowest point this year.
According to third-party data, the Solana network and its ecosystem have been thriving in the past few weeks. The market cap of all meme coins on its platform has risen from $6 billion last month to $14 billion currently.
Transaction and active address figures for Solana have continued to climb. In the last seven days, transactions increased by 7.3% to reach 462.5 million, surpassing the combined transaction count of major chains such as BNB, Base, Tron, and Near Protocol. Solana's active addresses also exceeded 34.7 million, more than double the number on Base, and significantly more than BNB's 7.8 million and Ethereum's 2.1 million.
Solana maintains its position as a leading blockchain network in the decentralized exchange industry, handling $22.7 billion worth of transactions in the last seven days and $97 billion in the past 30 days.
Solana is also the most utilized blockchain network, with active addresses significantly higher than its competition. The potential for a bullish setup has been indicated by Ethereum, with traders eyeing a $4k mark.
Taking a closer look at Solana's technical analysis, the daily chart shows the token bottomed out at $95.40 in April due to concerns about its meme coins. Despite this, it rebounded to hit a high of $185 as other altcoins rallied. However, Solana has formed a small double-top pattern at $184.53, with a neckline at $159.45. This pattern is often viewed as a bearish reversal signal.
On the optimistic side, Solana is on the verge of forming a golden cross pattern, as the 50-day weighted moving average is about to cross the 200-day average. This pattern usually leads to a strong bullish breakout. Consequently, a bullish Solana price forecast is probable, as long as it manages to break through the $184.53 resistance. If it does, it could rise to $200, which is slightly above the 50% retracement level.
The rise in Solana's crypto price while the Dow Jones and US dollar index fell can be attributed to a combination of factors unique to Solana and the broader crypto market dynamics. These factors include strong institutional investment, robust ecosystem growth, technical advantages, network activity, positive price momentum, and bullish analyst predictions within the crypto sector. When traditional assets like the Dow Jones decline and the U.S. dollar index falls, investors may seek alternative assets to hedge risk or pursue higher returns, causing flows into cryptocurrencies like Solana. Crypto can sometimes act as a non-correlated asset class, attracting speculative and institutional buyers during traditional market weakness.
- Despite Solana's progress towards $200 facing a roadblock last week, the token's market cap for meme coins has risen from $6 billion to $14 billion in the past few weeks.
- Transactions and active addresses on the Solana network have been on a steady increase, surpassing the combined transaction count of major chains like BNB, Base, Tron, and Near Protocol.
- Solana, a leading blockchain network in the decentralized exchange industry, handled $22.7 billion worth of transactions in the last seven days and $97 billion in the past 30 days.
- The potential for a bullish setup has been indicated by Ethereum, with traders eyeing a $4k mark for it.
- Solana's technical analysis shows a small double-top pattern at $184.53, which is often viewed as a bearish reversal signal, but the token is also on the verge of forming a golden cross pattern.
- The rise in Solana's crypto price can be attributed to a combination of factors such as strong institutional investment, robust ecosystem growth, network activity, positive price momentum, bullish analyst predictions within the crypto sector, and the need for investors to hedge risk or pursue higher returns during traditional market weakness.
