Solana (SOL) is also commonly referred to as the 'Ethereum killer' in the market, and as the market recovers, it is aggressively approaching the $220 mark, with the market currently experiencing fluctuations. The volatility has forced it to give back some of the gains, but considering its recent momentum, this is a shocking trend.
SOL surpasses ETH!
The Solana network is narrowing the gap with Ethereum, with key indicators suggesting that market share revenue will increase in 2024.
A bullish report released by hedge fund Syncracy Capital on November 12 states that Solana now compares favorably to Ethereum on almost all major economic metrics and has maintained steady growth over the past few months.
Reports indicate that in October 2024, the Real Economic Value (REV) of Solana is 111% of Ethereum's REV, up from 1% in the same period last year. This metric includes transaction fees and maximum extractable value (MEV) tips paid to validators, indicating the economic activity of the network.
Another metric the hedge fund used to assess Solana's growing popularity is total application revenue, which is the fees paid to protocols and applications built on the Layer 1 blockchain, such as Solana and Ethereum. In October 2024, Solana's TAR was 109% of Ethereum's, up from just 1% a year ago.
The surge in Solana's economic activity is mainly due to the memecoin frenzy, with several new memecoins emerging in the ecosystem in October. Notable performers include Goatseus Maximus (GOAT), whose market cap soared to $400 million in just a week. Other strong risers include SPX6900 (SPX), up 379%, Apu Apustaja (APU), up 170%, and FWOG, which rose 134% last month.
Furthermore, as traders and investors flock to purchase these meme tokens, they need to buy native SOL coins to pay transaction fees, thereby stimulating demand and absorbing the selling pressure brought about by the overall market adjustment.
Additionally, the surge in meme coin trading has also increased Solana's visibility, attracting speculative interest and long-term investors.
To confirm this stance, real-time data extracted from Solana's native blockchain analysis platform Hellomoon shows that the number of active buyers on the network continues to exceed sellers during the market pullback on Tuesday.
Unexpected drop: temporary setback or trend change?
The price of SOL reached $224 in early trading, followed by a mild pullback, and it has yet to find a support level. Currently, the price of SOL is $207, down 4.5% within 24 hours. However, its trading volume surged to $10.85 billion, leading to optimism that this setback may not last long.
Solana's outstanding price performance over the past month has attracted investors. The asset has increased by over 40% in the last 30 days, raising expectations that it may continue to be bullish. Investors expect SOL to gain more from the bullish winds sweeping through the cryptocurrency ecosystem.
Interestingly, after breaking below the support level of $216, it fell all the way down to $205 before rebounding. SOL seems to have lost further upward momentum as the asset continues to experience significant volatility.
This has led market trend watchers to speculate on the future price of the asset. Some believe that, given Solana's trading volume has not declined, it seems to be cooling down. They predict that during this bull market cycle, SOL may rebound to new highs, bringing unexpected surprises.
Solana price prediction:
After briefly dipping below $205 in the early hours of November 12, the price of Solana quickly rebounded to $210, with daily losses reduced to just 5%. As Binance listed ACT and PNUT, the buying pressure for SOL has been increasing, indicating that bulls may regroup and rise again.
As Tuesday's correction washed out the weak hands, technical indicators on the daily chart also confirmed Solana's potential to rise again to $250.
The widening of the Bollinger Bands indicates significant volatility and a large volume of trading.
However, with Solana's price currently around $207, and the trading price still below the VWAP of $213.89, the sustainability of bullish momentum remains uncertain.
In short, for SOL to regain upward momentum and break through $250, it needs to close above this key resistance level. The daily timeframe bottom of $205 for Solana can serve as direct support, and if the current price correction holds above this support, it is expected to resume its upward path as the market recovers!
