Solana might retest $200 price mark soon if the key on-chain growth markers are validated.
Key Notes
- Solana is in rebound mode, eyeing the next level at $200.
- The key catalyst of this growth is a boost in active daily addresses.
- The protocol is also benefitting from partnerships with industry giants.
There is a general price rebound in the crypto industry, and many market observers expect that it will serve as the pedestal for Solana
SOL
$155.8
24h volatility:
1.4%
Market cap:
$73.05 B
Vol. 24h:
$4.39 B
to climb to $200. Flagship cryptocurrency Bitcoin
BTC
$67 706
24h volatility:
3.5%
Market cap:
$1.34 T
Vol. 24h:
$53.87 B
surpassed the $67,000 mark earlier on Wednesday and is currently trading at $67,167.90. On the other hand, Solana’s price has retained the $150 psychological mark.
Technical Indicators Turn Green in Favor of Solana Bullish Run
Per CoinMarketCap data, SOL traded at $154.80 at press time after gaining 0.27% in the last 24 hours. Similarly, its market capitalization has increased, reaching $72.72 billion. This suggests that the coin is sustaining a bullish momentum. Even a daily chart shows that the local resistance trend line is sustaining dominance and keeping the bullish growth under check.
In the last seven days, SOL has recorded a price increase of over 8.4% and more than 17% in one month. With these positive metrics, SOL has recorded increased daily active addresses.
On October 14, this metric reached 4.61 million, reflecting an increasing demand for the cryptocurrency. Integrating the L1 network with platforms like PayPal and Stripe significantly contributed to Solana’s enormous momentum.
With more expansion, this rising demand could trigger a price rally for the coin in the Decentralized Finance (DeFi) and broader crypto ecosystem.
SOL’s uptake in the 50-day Exponential Moving Average (EMA) maintains a positive alignment with the 200-day EMA. Other technical indicators exhibit a positive trajectory, including the bullish crossover in the MACD and signal lines. Hence, the optimism for SOL to reach $200 is very high.
Considering the overhead trendline breakout and broader market recovery, the next line of action expected from Solana is for it to challenge the $186 resistance level and then the $201 mark. However, if the market flips and the coin experiences a drop and extension in pullback, it will likely challenge the $147 support level, followed by the 200-day EMA at $141.
Catalysts for SOL $200 Ambition
A possible trigger of this sentiment flip is FTX’s asset redemption process, which involves unstacking more than 178,000 Solana. A few weeks ago, the United States Bankruptcy Court approved FTX’s reorganization plan. This approval is expected to help the cryptocurrency exchange compensate its creditors following the company’s bankruptcy.
Then again, there are a few catalysts for a positive boost for Solana. Recently, the decentralized blockchain interoperability solution Wanchain demonstrated support for the asset. Notably, Wanchain boosted the ecosystem by integrating the scalable Layer-1 blockchain into its cross-chain infrastructure. Wanchain CEO Temujin Louie hinted at the team’s enthusiasm towards the integration.
“Solana’s ecosystem is attracting avid user engagement, and it’s important to serve growing communities with accessible solutions that make transferring assets as simple and efficient as possible.”
Similarly, Ethena Labs has already proposed integrating Solana into USDe’s collateral treasury. Once approved, the platform aims to gradually introduce SOL as a USDe collateral asset.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
