analysts are bullish on the SOL token

2024-05-20 07:17:00 ET

Solana (SOL) price has seen a strong recovery after forming a double bottom pattern at $120 earlier this month. It surged more than 49% from its May low, bringing its total market capitalization to more than $79 billion.

The Solana ecosystem is doing well

Solana has become one of the most popular networks in the blockchain industry, where it has become the largest alternative to Ethereum.

Data shows that the network has a total value locked (TVL) of over $10 billion and $3.8 billion in stablecoins. This makes it much smaller than Ethereum, which has over $99 billion in assets and $81 billion in stablecoins.

Solana’s TVL is significantly larger than other chains like Tron, Binance Chain, Arbitrum, and Base. The fastest growing players in the Solana ecosystem are Jito, Marinade, Kamino, Raydium, and Sanctum.

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(DEX) continued to gain market share in terms of volume. Jupiter, Raydium, and Orca were the largest DEX platforms by volume over the past 24 hours. They transacted tokens worth over $724 million, $718 million, and $365 million, respectively.

Solana has also become the fastest growing network in the coin industry. Its biggest meme tokens are like dogwifhat, Bonk, Book of Meme (BOME), and Popcat.

It has also become a major player in the decentralized public infrastructure (DePIN) sector. Data shows that the network hosts some of the best networks in the DePIN industry, like Helium and Hivemapper.

Developers love Solana for its low transaction costs and fast speeds. Solana can handle over 2,500 transactions per second (tps), while Ethereum processes less than 30 transactions.

Some analysts believe that the SOL token has the opportunity to get ahead of the Firedancer upgrade. In a note, Daniel Cheung noted that the token could soon reach $200.

Solana Price Forecast

SOL Chart by TradingView

The daily chart shows that the SOL token has rebounded over the past few weeks. Along the way, it passed the key resistance point at $157.60, its April 23 high.

Solana also rose above the crucial point at $160, the 23.6% retracement point. It also remained above the 50-day moving average while the relative strength index (RSI) moved closer to the overbought point. The Awesome Oscillator has inverted the neutral point.

Therefore, the outlook for the Solana token is optimistic, with the next point to watch being the yearly high of $204.30. A break above this level would indicate further gains, potentially up to $250.

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Solana Price Forecast: Analysts Are Bullish on SOL Token

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