It seems that Solana (SOL) is preparing to regain the $200 level
The price of Solana (Solana-SOL) rose by 29% in the past month, benefiting from the rebound of altcoins after Bitcoin (Bitcoin-BTC) surpassed the $100,000 level. Despite facing resistance near the $180 level since then, derivative market activities and blockchain data suggest the possibility of Solana continuing its upward trend.
Although it ranks fifth as the largest digital asset by market capitalization, Solana has become a dominant force in the decentralized finance sector, with a total value locked (TVL) of $9.136 billion, according to figures released by DefiLlama.
Unlike other blockchain networks that impose low fees, the rise in Solana's transaction fees provides high revenues for the blockchain, supporting the attractiveness of its currency SOL. According to DefiLlama data, Solana has generated base fees of $43.3 million over 30 days, surpassing Ethereum (Ethereum) which collected $24.9 million, but still lagging behind Tron (Tron) which gathered $51.9 million. On the other hand, this increase in decentralized applications (dApps) revenues and blockchain usage is pushing Solana's network revenues to reach their highest levels in 3 months.
Additionally, SOL benefits from the limited supply available for trading, with nearly 65% of it staked, which is a positive factor supporting the price increase. The perpetual futures funding rate of 8% indicates a generally moderate sentiment among leveraged traders, without implying excessive enthusiasm.
However, the price of SOL remains 40% lower than its all-time high of $295 recorded in January 2022, and momentum is still on the rise. Analysts believe the price could reach $200, especially with growing institutional interest and the formation of a bearish wedge pattern from the green support lines and red resistance on the chart below, which often indicates the beginning of a strong upward movement.
In a related context, other potential price incentives include the possibility of approving a Solana Spot ETF in the U.S. stock market, adopting a state-level crypto reserve, and increasing the use of digital asset representation. Although none of these incentives have materialized yet, the overall fundamentals indicate that Solana may be ready for another bullish trend.
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