Solana price rose by over 5% today, July 3, coinciding with the broad crypto market rally. This surge could accelerate to $200 as most Solana meme coins gained steam and a newly launched SOL ETF gain traction among Wall Street investors.
SOL price today trades at $155, with CoinMarketCap data showing that the 24-hour volume jumped by 37% to $4 billion.
SOL Price Technical Chart Points to a Surge to $200
The daily timeframe shows that Solana price has crawled back after bottoming at $127 in June. It has jumped above the 23.6% Fibonacci Retracement level at $121, and formed a small inverse head and shoulders pattern.
Most importantly, SOL price has formed a bullish flag pattern, a common continuation sign. This pattern’s flagpole starts at the year-to-date low of $93 and ends at $186, giving it a height of $93. The flag section is made up of a descending channel whose lower side links the lowest swings on May 19, June 9 and 23.
It has moved above the upper side and retested it, confirming the bullish breakout. It broke out at $145, meaning that the potential Solana price target is $238, up by 55% from the current level. This target is obtained by adding the breakout point to the pattern’s height. A surge to that level will be confirmed if it rises above the resistance at $186.
The other bullish catalyst is that Solana price has jumped above the 50-day moving average. Also, other top oscillators like the Relative Strength Index (RSI) are highly supportive of a breakout.
The bullish SOL price forecast will become invalid if the token drops below the key support at $127, the lowest swing in June this year.
SOL Meme Coins to Boost its Price
A potential catalyst for Solana is that its meme coins are in a strong recovery as investors buy the dip. CoinGecko data shows that the market valuation of all these coins has jumped by over 13% in the last 24 hours to $11 billion. Similarly, their volume skyrocketed to over $4.31 billion.
The best-performing Solana meme coins were Bonk, Fartcoin, Pudgy Penguins, Dogwifhat, and Popcat, which soared by over 20% in the last seven days.
This price action benefits Solana because it often leads to higger volume and fees in its ecosystem. For example, data shows that DEX protocols on Solana handled volume worth over $2 billion in the last 24 hours.
SOL price is also benefiting as a newly launched derivatives-focused Solana ETF with staking features gain steam. It had over $33 million in volume in the first day, a sign that the future SOL funds will have demand.
Summary
Solana price is attempting to breakout after forming a bullish flag pattern and moving above the moving average. This breakout will likely push it to $200 initially and then to its target level of $238. In the long term, the coin will likely jump to $500 as the SEC approves SOL ETFs.