Solana Price Analysis: Solid Network Metrics Hint at Possible Rally
The cryptocurrency market has been experiencing significant fluctuations, with Solana (SOL) also making a little price swing.
Despite broader market declines, Solana has shown remarkable resilience, maintaining its position as one of the top cryptocurrencies in terms of market capitalization.
Recently, the overall market saw a 5% drop in aggregate market capitalization within nine days, reflecting decreased investor interest in cryptocurrencies.
During this period, Solana underperformed its competitors, with SOL trading down 7.8% compared to BNB’s and Ether’s respective declines of 6.5%.
Solana Monthly Chart Source: CoinGecko
Despite these setbacks, Solana’s on-chain metrics and derivatives suggest a potential reversal. The market’s apprehension about SOL’s bearish momentum may be unfounded, as these metrics indicate no signs of stress.
The network’s strength and solid performance metrics provide a strong foundation for a possible rally, potentially paving the way for SOL to break past the $160 mark, a level it last saw over five weeks ago.
Solana’s Network Metrics
Solana’s network has demonstrated robust performance, especially in terms of Total Value Locked (TVL).
Solana Vs BSC TVL Source: DeFilama
As of July 5, Solana’s TVL matched that of the BNB Chain, marking a significant milestone for the Solana community.
This parity in TVL indicates a substantial increase in capital deployment on the Solana network. Liquid staking protocols like Jito and Marinade, each holding over $1 billion in deposits, are major contributors.
While Tron holds the second position in TVL, a large portion of its value is concentrated in a single DeFi application, raising concerns about its sustainability.
In contrast, Solana’s diverse and robust DeFi ecosystem, coupled with consistent network activity growth, positions it as a formidable competitor.
Additionally, Solana’s decentralized application (DApp) activity has also seen significant improvement.
Over the past seven days, Solana has gained 19% in active users, while competitors like Ethereum and BNB Chain have experienced declines. This increase in user activity, along with a 12% rise in DApp volumes to $703 million, suggests growing interest and confidence in the Solana network.
The impressive performance of Solana’s decentralized exchange, Raydium, which saw a 39% increase in active addresses, further supports the Solana rising metrics.
Solana Price Prediction: SOL Rallying to $160 Soon
Since July 3, Solana’s price has struggled to close above $145, primarily due to decreased investor interest and broader market declines.
However, recent on-chain and derivatives metrics suggest a possible reversal.
The network’s solid performance metrics provide a foundation for a potential rally, with analysts predicting a surge to $160.
Source: TradingView
SOL’s performance metrics indicate a shift from bearish to potentially bullish momentum, as evidenced by the balanced demand between longs and shorts in perpetual contracts.
Technically, SOL’s price action indicates a consolidation phase, with immediate resistance levels at the 50 EMA ($141) and 100 EMA ($146.35). The Relative Strength Index (RSI) remains neutral, allowing for potential upward movement as buying pressure increases.
Stable trading volume suggests cautious optimism among market participants, with the potential for a significant rally if volume picks up.
If Solana can overcome these resistance levels, it may aim for the $150 mark and potentially higher, with a target of $160 in the near term.
Notably, after reaching its all-time high of $259 in March, Solana’s price has declined by 58%, hitting a low of $121 on July 5.
Crypto analyst Marty observed a significant similarity between the price actions of Ethereum and Solana over longer time frames. Both cryptocurrencies experienced substantial drawdowns following their rallies, with Ethereum facing a 95% drop in 2017 and Solana encountering a similar downturn before the 2021 bull run.
Drawing parallels from Ethereum’s historical price surge, which saw a 2000% increase over 660 days post-drawdown, Marty predicts a comparable rally for Solana. He notes that it’s been around 619 days since Solana’s drawdown, suggesting approximately 50 days remain before a potential surge.
If Marty’s analysis is accurate, Solana could see an extraordinary rally, potentially reaching a target of $2,800, an 1,800% increase from its current price.
Investors should closely monitor key resistance levels and network performance metrics as SOL approaches the $160 mark, potentially paving the way for a bullish run.
Wiener AI Presale: A Crypto Gem You Don’t Want to Miss
The Wiener AI presale is in its final hours! Don’t miss your chance to secure $WAI tokens at the current price of $0.00073 before the price increases in the next stage.
With over $7.3 million raised, this is your last opportunity to invest in the future of AI-powered meme coin trading and earn rewards while you participate.
Benefits of Investing Now:
Immediate Access to Staking Opportunities: You can start earning rewards right away, with 64% of the total $WAI supply already staked.
Premium Features: Enjoy AI-enhanced trading, seamless sausage swaps, zero fees, and MEV sandwich bot protection.
Join the Meme Coin Revolution: Be part of a transformative movement blending humor with AI-powered trading.
Time is Running Out
Don’t miss this chance to invest in Wiener AI at the current price and enjoy the platform’s benefits. Secure your $WAI tokens today before the price increases in the next stage.
Join the Community
Learn more about this exciting opportunity and engage with the Wiener AI community on X (over 15K followers) and Telegram (over 12,000 members).
Contributors can join the WienerAI presale by connecting their crypto wallets and purchasing with ETH, USDT, or BNB.
Don’t let the latest Doggie AI meme coin on the block getaway – you could be missing out on a potential 100x ROI.
Buy WienerAI Here
The post Solana Price Analysis: Solid Network Metrics Hint at Possible Rally appeared first on Cryptonews.
Welcome to Billionaire Club Co LLC, your gateway to a brand-new social media experience! Sign up today and dive into over 10,000 fresh daily articles and videos curated just for your enjoyment. Enjoy the ad free experience, unlimited content interactions, and get that coveted blue check verification—all for just $1 a month!
Account Frozen
Your account is frozen. You can still view content but cannot interact with it.
Please go to your settings to update your account status.
Open Profile Settings