Here Is Why Solana Price Could Hit $300 as Transaction Activities Reach ATH

Highlights:

• Solana’s price drops 3% to trade at $209 at the time of writing. 
• Despite the fall, Solana has outperformed every other blockchain in terms of transaction activity.
• The blockchain recorded a staggering 66.9 million transactions, setting an all-time high since its launch in 2020.

The Solana price has plunged 3% to trade at $209, as a spike in trading volume suggests an increase in market activity. Its daily trading volume has shot up 5% to 7.14 billion. The drop comes following the Federal Reserve’s announcement of a 25 basis point interest rate cut. This saw BTC breach the $100,000 threshold, triggering widespread selling pressure across major cryptocurrencies. SOL also experienced a drop, pushing it to the sixth position among cryptocurrencies. 

Meanwhile, Solana has outperformed every other blockchain in terms of transaction activity. The blockchain recorded 66.9 million transactions, setting an all-time high since its launch in 2020. The spike in activity was largely driven by the Pudgy PenguinsNFT project, which chose Solana as the home for its new token, PENGU. 

@pudgypenguins' official token $PENGU is now launched on Solana 🐧

🧠 What is $PENGU?$PENGU is the native token of Pudgy Penguins, an iconic NFT collection with 8,888 cute penguins.

What you never knew about Pudgy Penguin and $PENGU👇🧵 pic.twitter.com/ndNWX5S1Bq

— Tokenomist (prev. TokenUnlocks) (@Tokenomist_ai) December 17, 2024

Solana Statistical Data

Based on CoinmarketCap data:

• SOL price now – $209
• Trading volume (24h) – $7.14 billion
• Market cap – $100.32 billion
• Total supply – 590.36 billion
• Circulating supply – 479.15 billion
• SOL ranking – #6

Solana Price Aims for a Bullish Reversal Above the Triangle

Solana has been on a decline for weeks since touching $264 earlier in the month. Technical indicators suggest a bounce back to the $200-$220 range, indicating a potential rebound in the Solana ecosystem. This might be sooner as reknowned analyst Ali-charts has noted an increase in Solana transactions. He has said that “the number of daily transactions on the Solana network nears 67 million.”

The number of daily transactions on the #Solana $SOL network nears 67 million! pic.twitter.com/1DIZWjA99S

— Ali (@ali_charts) December 18, 2024

Looking at the technical outlook, the Solana price has breached below the $219 support level, coinciding with the 50-day SMA(Green) currently at $209. However, Solana Bulls have come prepared not to leave any stones unturned, considering they have the support level at $167, coinciding with the 200-day SMA.

A falling triangle pattern on the daily chart reveals the possibility of a significant trend reversal. This pattern forms during the downtrend, with two trendlines connecting a series of lower highs and lower lows, sloping downward on the chart from left to right.

The pattern would be validated when the Solana price breaks above the triangle before the trendlines converge. A spike in trading volumes ensures that the uptrend is sustainable. Buy orders should be placed slightly above the triangle with the profit target equal to the height of the pattern extrapolated from the breakout point.

Moreover, resistance at the 50-day SMA could invalidate the triangle pattern breakout. Hence, bulls need to collect as much liquidity as possible before launching the next offensive mission.

The Relative Strength Index sits at 42.42, tilting the odds towards the bears. However, increased buying appetite at this level will see the RSI jump above the 50-mean level. Moreover, there is still more room for the upside before SOL is considered overbought.
The MACD indicator, which has introduced a sell signal, is worsening the outlook. This is manifested as the MACD has plunged below the orange signal line, upholding a bearish outlook. 

Solana Price Prediction

Despite the bearish outlook, based on the technical analysis, Solana’s daily transactions are near 67 million. Moreover, its rising trading volume suggests that a bullish reversal may take place soon. Furthermore, the bulls seem to be gaining momentum as they aim to break above the falling triangle pattern. If the bulls manage to bring down the $219 hurdle and flip into the support floor, investors will start acclimatizing to gains, targeting highs above $300 but, most importantly, the resistance at $264.

Conversely, if the bears capitalize on the sell signal from the MACD and the falling momentum in the RSI, the Solana price would fall through. In such a case, the $187 support will be in line to absorb the potential selling pressure.