Highlights:
- Solana is currently consolidating between the $158.54 resistance and $152.35 support
- Rising bullish sentiment puts the $158.54 resistance in focus in the short-term
- A rally through the $158.54 resistance could see Solana rally to $200 soon
Solana is sending bullish signals, reflecting what is happening in the broader crypto market. When writing, Solana was priced at $156.39, registering a 1.95% gain within the day, making conditions for a bullish outlook plausible.
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Technical Analysis – Solana in Consolidation Phase with Bullish Undertones
From the charts, Solana is consolidating. Solana is currently within a range, facing a resistance line at 158.54 and a support line at 152.35. With the rest of the market sending bullish signals, traders are focusing on the 158.54 resistance, hoping to break out upside. A rally through the $158.54 level could push Solana to levels as high as $200.
Conversely, if bears take control and push Solana through the $152.35 support level, Solana could make a corrective move to the next support at $148.34. Though both scenarios remain possibilities, current probabilities favor a bullish breakout.
Bitcoin’s Rally Fuels Optimism for Altcoins
The optimism surrounding Solana is mainly linked with Bitcoin, which has been doing well this week. If Bitcoin’s rally continues and raises the entire crypto market, Solana could benefit as well. Being one of the best-known layer-1s, Solana could see a surge in demand as investors pivot into large-cap altcoins.
Solana Unrivaled Growth and Adoption Outshining Ethereum
Aside from the influence of Bitcoin, Solana’s adoption as an alternative to Ethereum is a big growth driver. Over the last three months, Solana has experienced its adoption surge, with more users than Ethereum in active daily addresses.
BREAKING: SEI BECAME THE L1 CHAIN WITH THE HIGHEST PERCENTAGE OF DAILY ACTIVE WALLETS GROWTH IN THE PAST 3 MONTHS SURPASSING @SuiNetwork @ethereum AND @solana pic.twitter.com/HEBvu0vnLs
— Osten (@_osten) October 14, 2024
Within this time, the daily active addresses of Solana grew by 149.2%, compared to an astonishing shrinkage of 17% in the daily active addresses of the users of Ethereum. Such a discrepancy in daily active wallets demonstrates how useful and interesting Solana is turning in the crypto world.
Also, the popularity of Solana as a launchpad for meme coins has further enhanced its profile and contributed to the token’s price. Today, most of the top meme coins in the market are based on Solana. This is a big deal in driving the intrinsic demand for Solana. With the bull run bringing in more meme coins on the Solana blockchain, the push could see the token hit new unprecedented prices.
Crypto Analysts and Positive Market Sentiment
Moreover, the crypto community is also becoming more positive about Solana’s future. Today, a crypto analyst, Clicar Folks, has made a strong bullish case for Solana. The analyst tweeted, “$SOL, only trigger for #Solana is if it flips the grey zone (165). Then the target would be 190 to 195. Keep an eye on Salona and follow me. Do hit a like.”
Such an atmosphere created by such prominent analysts could see Solana FOMO into Solana. Such could see Solana not only rally through resistance and test $200, but also potentially retest its 2021 all-time highs.
Recap – Solana Positioned for a Rally
Solana, like many altcoins, is currently consolidating but showing signs of positive price movement. Given that the market has lately been optimistic about Bitcoin and Solana already has more adoption than Ethereum, chances are there will be a push higher soon.
With Solana’s position as a top platform for launching meme coins, a combination of FOMO and intrinsic demand could see Solana rally in the short term. A target of $200 is quite realistic in the short term.
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