Solana Price Pattern Points to a 65% Surge as Key Metric Beats Ethereum by Far
Solana price has stalled at a crucial make-or-break support level that could determine its next direction. After peaking near $300 in January, SOL price now sits around the key level at $120. This article explores whether its rising transaction count and decentralized exchange volume will help it bounce back.
Solana Price Could be Supported by Transaction Count that Beats Ethereum
Solana has been criticized in the past few months because of the prevalence of meme coins and rug-pull scams in its platform. Indeed, data by CoinGecko shows that all Solana meme coins now have a market cap of under $7 billion, down from $30 billion earlier this year.
Still, there are signs that the Solana network is doing well. One bullish factor is that it still leads in terms of the number of transactions in its ecosystem. Data shows that its transaction count in the last seven days stood at 334.8 million, which helped its fees to rise by 17% to $6.25 million. Solana also has over 24.52 million addresses.
In contrast, Ethereum handled 8.37 million transactions in the last seven days, and made fees worth $4.16 million. It had less than 2 million active accounts in this period. This performance is a sign that the Solana network is still doing much better than Ethereum despite its challenges. TokenTerminal data shows that Solana has made $861 million in fees in the last 180 days, higher than Ethereum’s $756 million.
More data shows that protocols in the Solana ecosystem handled over $11.2 billion in the last seven days, a 18% increase from a week earlier. While Ethereum’s volume of $12 billion was higher, Solana is seeing faster growth.
SOL Price Technical Analysis as it Sits at a Make-or-Break Point
The daily chart shows that the Solana price may be about to make a strong bullish breakout if the current support level holds. It has failed to move below $119 at least seven times since April last year, a sign that short sellers are afraid of shorting below this level. It has historically bounced back by double digits whenever it dropped to this support point.
Solana price has formed a small double-bottom pattern at $119.75, and its neckline is at $146.80, its highest point on March 25. Most importantly, it has retested the descending trendline that connects the highest levels since January 30. This trendline is the upper side of the falling wedge pattern, a popular bullish reversal sign.
Therefore, the most likely SOL price forecast is where it bounces back and retests the crucial resistance at $193.65, its highest level on July 29, up by 65% from the current level. This view will become clearer if Solana rises above the neckline at $146.80.
A drop below the psychological level at $115 will invalidate the bullish outlook, and point to further declines below $100.
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