Solana (SOL) has experienced a surge of 25 percent over the past seven days, marking a strong performance amid heightened network activity ahead of the Jupiter token airdrop on Wednesday.
After briefly dropping below $80 last week, SOL rallied back to about $103—although still below its 2021 peak of nearly $260. According to data from CoinGecko, SOL saw a two percent increase on January 30, raising the trading volume to above 53 percent.
SOL has significantly recovered from the lows observed in late 2022 when its price dipped near $8. Over the past year, SOL has demonstrated a 333 percent increase.
The increased SOL-centric projects play a key role in its recovery. These include decentralized exchanges or DEXs (Jupiter, Orca, and Drift), lending platforms (Solend, Marginfi, Kamino), staking (Marinade Finance and Jito) and NFTs (Mad Lads, and Tensorians) that are making waves in the crypto market despite the spot Bitcoin ETF hype.
SOL-based DEXs saw an increase in engagement as traders were drawn to their lower fees and faster transactions compared to other tokens like Ethereum (ETH). Notably, SOL’s DEXs have outperformed ETH’s trading volume in the 24-hour period ending on Sunday evening, as reported by DeFi Llama.
Additional insights from Hello Moon highlight a surge in various on-chain metrics, including daily active users with a SOL wallet balance. Furthermore, SOL witnessed an all-time daily high of nearly 750,000 new wallets used to sign transactions last Friday.
#Solana appears to be breaking out from a descending parallel channel. If $SOL can hold above $94, it has a great chance of advancing toward $113! pic.twitter.com/cNdS6GeXXK
— Ali (@ali_charts) January 28, 2024
Analysts: Bullish pattern for SOL
Prominent crypto analysts Ali Martinez and Raoul Pal have both identified bullish chart patterns and anticipate an uptrend for SOL.
Ali Martinez pointed out that SOL had broken out of a descending parallel channel, indicating a potential recovery from a price slump on December 25, 2023. According to him, if SOL maintains a level above $94, it could see an increase to $113, potentially reclaiming its one-year high of $125.19.
“Solana appears to be breaking out from a descending parallel channel. If $SOL can hold above $94, it has a great chance of advancing toward $113!” Martinez said on X.
Raoul Pal shared a similar sentiment, emphasizing that SOL had emerged from a descending pattern channel, which is a strong bullish signal. Pal advises investors to maintain confidence in SOL, stick with their positions and remain optimistic about its prospects.
A closer examination of the daily chart aligns with the positive sentiment expressed by these analysts, supporting potential upward price movements for SOL in the short term.
Stick with the program… The Sun Also Rises $SOL
Log chart perfection? Maybe, just maybe… pic.twitter.com/S9Ctcs15pl
— Raoul Pal (@RaoulGMI) January 27, 2024
Another crypto analyst, Christiaan Defi, revealed his long-term price target of $500 for SOL, nearly five times its current value. Additionally, short-term predictions by the analyst include targets of $137, $163, $194 and $225.
Defi based his predictions on technical analysis, citing trendline support and bullish moving average indicators. He also speculates the possibility of a Solana ETF, considering BlackRock’s active engagement in Ethereum ETF efforts.
On a similar note, respected analyst Michael van de Poppe foresees a move to $140 for Solana after “a successful support test at $80 on a higher timeframe”. Poppe acknowledged SOL’s earlier pullback as a period of relative inactivity.
“Solana is ready for upward continuation here. After the initial push upwards, there’s always a period of consolidation, and it seems it’s ended,” said Poppe.
“A higher timeframe support test at $80 provided support. Looks likely we’ll be continuing towards $140.”
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