SOL, the native cryptocurrency of the Solana ecosystem has been trading sideways over the past three weeks amid broader market consolidation. A look at the daily chart shows the $160 support and an emerging trendline is bolstering to maintain the prevailing uptrend and prevent major correction. Moreover, the Solana price developing a bullish continuation pattern
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SOL, the native cryptocurrency of the Solana ecosystem has been trading sideways over the past three weeks amid broader market consolidation. A look at the daily chart shows the $160 support and an emerging trendline is bolstering to maintain the prevailing uptrend and prevent major correction. Moreover, the Solana price developing a bullish continuation pattern along with recovery in On-chain activity hints at the potential of a prolonged rally.
Also Read: Top Altcoins to Buy Along with Solana for 10,000% Growth Potential in 2024
Solana Network Sees Significant Growth as Token Creation Soars
The long-term trend in Solana coin has returned bullish as it has nearly recovered the entire loss triggered by the FTX collapse. An analysis of daily charts shows that the SOL price is now witnessing a steady rally under the influence of an ascending trendline.
On May 1st, the altcoin rebounded from the support trendline and rallied 44.5% within six weeks to currently trade at $171. However, with the broader trend uncertain, Solana’s price is facing a downsloping resistance which limits the buyer’s recovery attempt.
The two converging trend lines revealed the formation of a symmetrical triangle pattern indicating a consolidation trend before the next leap.
Despite the sideways movement in the SOL price, there has been notable growth in on-chain metrics according to The Block. This analytics tool shows the number of active addresses on the Solana network has increased from 1.08 million on May 2nd to 1.7 million today, marking an approximate 57.41% rise.
Also Read: Crypto Prices Today June 7: Bitcoin Stands Firm Above $71K, Wormhole (W) Soars 12%
This significant uptick in network activity and user engagement indicates a strengthening in the adoption and utilization of Solana. This recovery is significantly surged by the Memecoin Mania on the Network.
In May, the Solana blockchain saw the creation of 455,000 tokens, driven by lower entry barriers and the aspiration to develop successful meme coins, as reported by The Block Pro. Throughout the year, Solana has witnessed the launch of approximately 1.1 million new tokens, highlighting a robust trend in token generation on the platform.
By the press time, the SOL price currently trades at $172.5, holding a market cap of $79.3 Billion. With an intraday gain of 1.2%, the coin price is heading too high to challenge the upper boundary of the triangle.
A potential breakout will accelerate the buying momentum and set the potential target from Solana price prediction to $210, followed by $260.
Technical Indicator
- Exponential Moving Average: The coin price rebounding from the 20-and-50-day EMAs indicates an aggressive recovery trend and active accumulation from buyers.
- Average Directional Index: The falling ADX slope accentuates that currency consolidation is assisting in stabilizing prices and recuperating prevailing momentum.
Bottom Line:
The Solana coin exhibits strong potential for future growth and is well-positioned to excel in the expected bull run. With the cryptocurrency market cap anticipated to reach $5 trillion, most major cryptocurrencies are likely to achieve new highs. Solana, in particular, displays a promising outlook and aims to approach the $1000 milestone.
The post Could Solana Price Reach $1,000 If Crypto Market Cap Rockets To $5 Trillion? appeared first on CoinGape.
