$SOL Solana rose after falling to $94.50 in April, as demand for its tokens and meme coins surged.
According to the latest data on Saturday, the price of Solana rose to $172 and is now fluctuating at its highest level since March 3 of this year.
The rally coincided with the ongoing bull rally in the cryptocurrency and stock markets. Bitcoin and most altcoins surged, resulting in the total market capitalization of all cryptocurrencies exceeding $3.2 trillion.
Most Solana meme coins have also surged in recent weeks, increasing their market capitalization from $6 billion in April to $13 billion today.
This growth has also reflected in the performance of decentralized exchanges. The volume processed by protocols on the network, such as Raydium and Meteora, rose to $20 billion in the last seven days and to $78.93 billion in the last 30 days.
This is a significant increase compared to Ethereum protocols, which processed $13 billion and $51.5 billion during this period.
The price of Solana will also benefit from the upcoming approval of spot cryptocurrency exchange-traded funds. Seven firms, including VanEck, 21Shares, Grayscale, and Bitwise, have filed applications for the SOL ETF. If the SEC allows staking, JPMorgan estimates that these funds will attract over $6 billion in the first year.
Price analysis of Solana: the textbook model indicates a rise to $500
SOL price chart
The weekly chart shows that the price of SOL has formed a classic chart pattern known as a cup with handle. This pattern is characterized by horizontal resistance, a rounded bottom, and a handle section.
The top of this pattern was priced at $258, while the bottom was $8.05. It now forms part of the handle of this pattern.
The best way to approach the target price using this pattern is to measure the depth of the cup, which in this case is 97%. Then, the same distance is measured from the top of the cup, resulting in a target price of around $500.
The bullish price forecast for Solana will become invalid if the coin drops below the key support level of $94.50.
