Solana price is slowly forming a highly bullish chart pattern that may push it from ~$150 today to almost $500 in the next few months. Aiding to this SOL forecast is on-chain data showing the the number of transactions, addresses, and fees in the network are rising, and beating other popular chains.
SOL Price Analysis: Chart Signals 3X is Possible
Solana price is a bit volatile on the short-term charts. However, a closer look at longer-timeframe charts show that the coin may be on the verge of a strong breakout, potentially to $500.
The chart below reveals that the value of SOL has been forming a giant cup and handle pattern since 2021. C&H is a bullish continuation pattern made up of three key parts, including a rounded bottom, a resistance, and a consolidation or a pullback. Its upper side is at $210, while the lower side of the cup is at ~$10.
The ongoing solana price action is the handle section. Therefore, a final break above the cup section could lead to a bullish breakout to $462. This SOL price forecast is derived by measuring the cup’s depth, which is about 95%, and then measuring the same distance from the upper section.
The bullish SOL prediction will become invalid if the coin crashes below the key support at $94.50, its lowest level in April. Additionally, it is likely that this analysis will take months or even years to work out. For example, the first section of the cup took over four years to complete.
Solana Price Could Benefit as Monthly Transactions Jump
Nansen data show that the Solana network is doing well, and is outperforming other top blockchains in the crypto industry. The number of transactions in the network jumped by 48% in the last 30 days to 1.66 billion. In contrast, Tron, the second-most active chain, handled 249 million transactions, while Ethereum processed 36 million of them.
The rising transactions in this period was aided by the big increase in active addresses as some of the Solana meme coins. Active addresses on Solana spiked by 8.2% to 104 million, higher than the other top chains, combined.
Solana’s transactions have also led to a substantial increase in the fees collected by the network. These fees soared by 47% to $35 million, making it the second most profitable chain in the network after Tron. More third-party data show that Solana is firing on all cylinders, which may help boost the Solana price over time.
- DEX volume processed by Solana protocols in the last 30 days rose to $76 billion, surpassing Ethereum and BSC’s $53 billion and $30 billion, respectively.
- The market cap of stablecoins on Solana’s network has jumped to a record high of $13 billion, up from January 1’s $4.7 billion.
- Polymarket odds of a spot Solana ETF have jumped to 77%, and JPMorgan sees initial inflows of $6 billion.
Frequently Asked Questions (FAQs)
There are rising odds that the Solana price will rise by 3x because of its fundamentals and technicals. Technically, it has formed a cup and handle pattern, while fundamentally, transactions are growing.
These transactions soared because of the growing Solana meme coin ecosystem, and stablecoin market cap.
The most bullish catalysts for Solana are the rising ETF approval odds and the fact that it is the biggest player in DEX.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/solana-price-rare-pattern-points-to-3x-gains-as-monthly-transactions-hit-1-6b/
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