Solana
Could Solana Price Reach $1,000 If Crypto Market Cap Reaches $5 Trillion?
SOL, the native cryptocurrency of Solana The ecosystem has been trading sideways over the past three weeks amid broader market consolidation. A look at the daily chart shows support at $160 and an emerging trendline strengthening to maintain the current uptrend and avoid a major correction. Additionally, Solana price developing a bullish continuation trend as well as resuming on-chain activity hint at the potential for an extended rally.
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Solana Network Sees Significant Growth as Token Creation Soars
Solana Price| Commercial view
The long-term trend of Solana coin has returned to the bullish side as it has almost recovered the entire loss triggered by the FTX collapse. An analysis of daily charts shows that SOL price is now experiencing a steady rally under the influence of an ascending trendline.
On May 1, the altcoin rebounded from the support trendline and rose 44.5% in six weeks to currently trade at $171. However, with the overall trend uncertain, Solana price faces downward resistance that limits the buyer’s attempt at recovery.
The two converging trendlines revealed the formation of a symmetrical triangle indicating a consolidation trend before the next jump.
Despite the lateral movement of SOL Price, there has been notable growth in on-chain metrics according to The Block. This analytics tool shows that the number of active addresses on the Solana network increased from 1.08 million on May 2 to 1.7 million today, an increase of approximately 57.41%.
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This significant increase in network activity and user engagement indicates increased adoption and usage of Solana. This recovery is considerably accelerated by the Memecoin Mania on the network.
In May, the Solana blockchain saw the creation of 455,000 tokens, driven by lower barriers to entry and the aspiration to develop successful meme coins, as reported by The Block Pro. Throughout the year, Solana saw the launch of approximately 1.1 million new tokens, highlighting a strong trend in token generation on the platform.
At press time, SOL price is currently trading at $172.5, with a market cap of $79.3 billion. With an intraday gain of 1.2%, the coin price is too high to challenge the upper boundary of the triangle.
A potential breakout will accelerate the buying momentum and set the potential target for Solana Price Prediction at $210, followed by $260.
Technical indicator
- Exponential moving average: Coin price rebounds from 20 and 50 days EMA indicates an aggressive recovery trend and active accumulation by buyers.
- Average directional index: The downward slope of the ADX highlights that monetary consolidation helps stabilize prices and regain current momentum.
Conclusion :
Solana coin has strong potential for future growth and is well-positioned to excel in the expected bull run. With the market cap of cryptocurrencies expected to reach $5 trillion, most major cryptocurrencies are likely to reach new highs. Solana, in particular, shows promising prospects and aims to get closer to the $1,000 mark.
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