Solana Price Forecast: $200 an Easy Target for SOL in the Short Term

Highlights:

Solana is currently flirting with the $186.59 multi-month resistance
A breach of the $186.59 could push Solana to $200 or higher
Strong fundamentals and Bitcoin price action to push SOL through resistance

Solana (SOL) has emerged as one of the standout performers among large-cap cryptocurrencies this month. Over the past 30 days, Solana has surged by an impressive 28.64%, showcasing its strong bullish momentum. However, in the last 24 hours, Solana has experienced a minor correction, which aligns with the overall market trend. At the time of writing, Solana was down by 5.53%, trading at $180.51.

Market Influence and Core Fundamentals

The recent drop in Solana’s price is largely attributable to Bitcoin’s price correction. Yesterday, Bitcoin’s price dropped after a brief rally, causing ripples across the cryptocurrency market. However, Bitcoin is currently showing signs of recovery, which could positively impact Solana and help it regain its bullish momentum.

Key Metrics Driving Solana’s Price Performance

Beyond following Bitcoin’s price action, Solana boasts robust core fundamentals that position it for continued growth. These fundamentals include significant increases in Total Value Locked (TVL) and active addresses, all contributing to its strong market position.

Total Value Locked (TVL)

Solana’s TVL now stands at $5.5 billion, over three times what it was seven months ago. This substantial increase in TVL underscores the growing confidence and investment in Solana’s ecosystem. Higher TVL indicates more capital being utilized within Solana’s decentralized finance (DeFi) applications, which can drive further adoption and price appreciation.

Transaction Fees

Solana is doing higher numbers than Ethereum in weekly total fees for the first time. In the week starting July 22, Solana generated around $25 million in revenue, slightly higher than Ethereum’s $21 million. This milestone highlights Solana’s efficiency and growing usage, making it an increasingly attractive platform for developers and users.

For the first time ever, Solana surpassed Ethereum in total transaction fees and MEV tips on the weekly timeframe ($25M vs $21M)

Solana validators and stakers are absolutely eating this cycle pic.twitter.com/kIIKVLUDPr

— Dan Smith (@smyyguy) July 29, 2024

Active Addresses

Solana’s active addresses have reached 10 million this week, marking a new all-time high. This surge in active users reflects the growing popularity of Solana, particularly as a launch platform for meme coins. As demand for SOL rises, it could further increase prices and solidify Solana’s position as a leading cryptocurrency.

Technical Analysis – Solana Price is Now Trading At a Critical Resistance Level

Analyzing Solana’s price charts reveals a strong bullish trend since July 5. However, Solana encountered resistance in the past 48 hours at $186.59, a multi-month high. Overcoming this resistance is crucial for Solana’s short-term prospects. If bulls push Solana past the $186.59 resistance, the price could rally to $200 or higher soon.

Solana Price Chart — **Source: TradingView**

Conversely, if bears gain control, the critical level to watch is the $172.89 multi-week support. A breach of this support could cause Solana’s price to drop to $162.66 in the short term. Despite the potential downside, the overall market sentiment remains optimistic, especially with Bitcoin’s recent rebound.

Solana Price Poised to Benefit from Bitcoin’s Rebound

Bitcoin’s price movements often set the tone for the broader cryptocurrency market. With Bitcoin showing signs of a rebound after yesterday’s correction, Solana is likely to benefit from this positive momentum. If Bitcoin continues its upward trend, it could help Solana break through the $186.59 resistance, making the $200 mark a realistic short-term target.

Solana’s strong core fundamentals also suggest that it is well-positioned for continued growth. The significant increase in TVL, transaction fees, and active addresses highlights the Solana network’s increasing adoption and utility.