Solana (SOL) Sees Unexpected Market Surge, Price Surpasses $190

Solana (SOL) Sees Unexpected Market Surge, Price Surpasses $190

Solana (SOL) has experienced a notable market rally, with its price exceeding $190 earlier today. This represents a solid 6% increase over the past 24 hours, indicating a promising outlook for the token.

Analysts Predict Ambitious Prices for SOL

In light of these developments, analysts are forecasting ambitious prices for SOL. On-chain analysis suggests that these projections may be justified.

Unprecedented On-Chain Activity for Solana

As of press time, SOL is trading at $192.70, a level not seen since April. This price surge is not surprising to BeInCrypto, which had predicted Solana’s potential to surpass this year’s open interest high. That milestone has been reached, but today’s focus is on a different metric: active addresses within the Solana ecosystem, which are approaching a three-year high.

Currently, Solana’s daily active addresses stand at 2.07 million, nearing the 2.26 million peak seen during the 2021 bull market. Active addresses are crucial as they indicate user participation on the network and can significantly influence SOL’s price. During the peak of the 2021 bull cycle, Solana rose above $260 with about 3.14 million active addresses.

If this pattern holds, SOL could be poised to surpass its yearly high and potentially revisit its all-time high. Moreover, Solana’s market cap has recently outpaced Binance Coin (BNB), and the project enjoys a substantial level of social dominance, currently at 6.43%. This increase in media coverage could further boost SOL’s price, potentially pushing it past $200 soon, similar to its performance in March.

SOL Price Prediction: On the Path to a New All-Time High

The recent upswing in Solana’s price can be linked to the breakout of a descending triangle on July 26, a bearish pattern indicating the continuation of a downtrend. However, once the price broke out of this pattern, a notable uptick followed, leading SOL to reach $186. After a slight decline, an ascending triangle formed, validating the bullish trend.

An ascending triangle, created by a horizontal trendline along the swing highs and a rising trendline along the swing lows, is a bullish pattern indicating the continuation of an uptrend.

Investor confidence in SOL’s bullish potential has risen on X. Many analysts believe a run to $1,000 might be conservative, with some predicting even higher levels. Chris Burniske, a former crypto lead at ARKInvest, stated, “SOL to $1,000 could be conservative.”

In the short term, SOL could retest the $200 mark. If this level holds, the token’s price might start a rally towards its November 2021 high of $260.06. However, this prediction could be invalidated if on-chain activity significantly decreases or if market sentiment turns bearish, potentially pushing SOL’s price down to around $180.