Solana [SOL] performed strongly at the beginning of this month, rising 13% in the past day, with SOL's trading price at $201 at the time of writing, resulting in a monthly increase of about 18%.
Analysis shows that the increase in network activity has driven the growth of this asset, and there is still potential for further increases. AMBCrypto analyzed how these factors will support SOL's performance in the coming days.
Sales skyrocketed, revenue increased.
The trading activity of SOL and the revenue generated by the blockchain are steadily rising.
The trading volume of stablecoins has been a prominent indicator, with a single-day trading volume reaching 1.2 billion dollars, setting a four-month high, last seen in March.
Currently, the development related to stablecoins is dominating the market, including the (GENIUS Act) and Arc launched by Circle—a first-layer blockchain specifically for stablecoins.
As trading volume surged, revenue also increased significantly. According to Artemis, the revenue of the chain in the past day was $163,400, setting a record for August.
With the increase in asset market usage, these positive network developments may impact SOL's price.
Real users are driving the growth of SOL.
With the latest developments in the network, user activity and interest have remained high.
The number of daily active addresses (which measures user interaction based on transactions) has significantly increased.
As of the time of writing, data from Artemis shows that the network has 3.8 million active users, an increase from the number of active users in recent days.
Similarly, the surge of 100.6 million transactions indicates that each user completed an average of 26 transactions in the past day.
The surge in activity has increased SOL's utility and demand, promoting the recent on-chain momentum.
Is a rally underway?
SOL's current target is $300, but the potential rebound depends on overcoming several resistance levels in the future.
As of the time of writing, the asset has broken through the 0.5 Fibonacci level of $195.55, a level that previously triggered price drops on July 21 and 23.
The momentum at this level seems strong, reflecting a growing demand for this asset in the market. If this continues, SOL's next resistance level will be at $219.21.
The last two resistance levels before the $300 target are $252.91 and $296.83. The former is more influential as it has previously triggered multiple pullbacks.
Currently, the overall demand on and off the chain remains strong, which may sustain the bullish momentum.
