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Solana price prediction: SOL desperately needs to flip key level

By:
on Feb 29, 2024
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  • Solana price jumped to a key resistance level on Thursday.
  • Solana's ecosystem has grown rapidly in the past few months.
  • Some of the top players in the industry are Render and Helium.

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Solana (SOL) price staged a strong comeback on Thursday as investors continued buying Bitcoin and other altcoins. The token soared to a high of $125.85, which was a notable level since it was its highest point in December last year. It has become one of the best-performing cryptocurrencies as it jumped by over 800% from its lowest point in 2023.

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Solana’s ecosystem is booming

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The main reason why the price of Solana has surged is that investors are moving back to cryptocurrencies. For example, Bitcoin has surged to over $60,000, a remarkable feat since it was trading at $16,000 in December 2022. Most altcoins tend to thrive when this is happening.

Internal metrics shows that Solana’s ecosystem is booming. For example, the Total Value Locked (TVL) in its DeFi ecosystem jumped by over 48% in the past 12 months to over $6.48 billion. This makes it the fourth-biggest players in the industry after Ethereum, Tron, and BNB.

Its decentralised exchanges (DEX) have also taken substantial market share in the industry. Data compiled by CoinMarketCap shows that Orca and Jupiter have moved into the top ten of the biggest DEXes in the world in terms of volume. Orca handled tokens worth $930 million while Jupiter processed $742 million in the past 24 hours.

Raydium has also moved into the top 20 of the biggest DEX platforms in the world. It handled over $170 million in the same period. This trend could continue as Solana’s meme coins like Bonk and Wen bounce back.

Solana price also jumped as other parts of the ecosystem remained highly vibrant. Render Token, a platform for decentralised GPU has benefited from the ongoing demand for AI cryptocurrencies. Other top DePIN networks in Solana that are doing modestly well are Helium and Hivemapper.

Solana price forecast

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Solana price

SOL chart by TradingView

Turning to the daily chart, we see that the SOL token price has jumped sharply in the past few days. This rally happened as investors targeted the key point at $125.85, which was its highest swing in December. 

Retesting this point is an important move since the coin has now formed a double-top pattern, which is a popular reversal sign. The neckline of this pattern was $79, which is about 36% below the current level. 

On the positive side, Solana remains above the 50-day and 100-day Exponential Moving Averages (EMA), which is a positive sign. Therefore, bulls must move above the double-top price in a bid to invalidate its bearish view. If this happens, the next point to watch will be at $150.

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