According to U.Today, Solana has made a significant breakthrough, with its price rising from $170 to $180. This recovery suggests that Solana could potentially reach a $200 price target in the near future. The recent price movement was accompanied by a substantial increase in trading volume, indicating strong buying pressure. The leap from $170 to $180 is significant as it surpassed a local resistance level, implying that the bulls are gaining control. This momentum could potentially push Solana towards the much-anticipated $200 mark.
A detailed analysis of the chart shows that Solana has risen above the 50-day and 200-day moving averages, key indicators of a bullish trend. The recent break above these moving averages strongly signals an upward trajectory. Moreover, the Bollinger Bands are expanding, suggesting increased volatility and the possibility of further price gains.
In addition to technical indicators, on-chain data also supports a bullish outlook for Solana. The number of new addresses on the Solana network has been consistently increasing, indicating growing interest and adoption. According to Hellomoon, the number of new addresses in May 2024 is on the rise, suggesting that more users are joining the network. Furthermore, the weekly transaction fee breakdown shows an increase in non-vote (priority) fees, indicating higher network usage and demand for transaction processing. This rise in network activity reflects the growing utility of Solana's blockchain.
However, despite the encouraging technical and on-chain metrics, the overall market is far from euphoric. The current situation suggests that Solana and similar cryptocurrencies are unlikely to reach all-time highs. Inflows are still significantly lower than this year's peak, let alone the bull runs of 2021 and 2017.
