Solana (SOL) has shown strong growth momentum as the crypto market regains strength. Currently trading at around $154.52, the market expects it to test the key resistance level of $180. The impetus for this rise comes from Bitcoin's dominance and an unexpected increase in memecoin activity, making Solana a key contender for the next round of growth in the crypto market.
Solana’s Strong Rally: Solid Foundations
Solana’s price has risen by 15% over the past month, attracting more and more retail and institutional investors. After a slight decline, SOL rose again by 5% last Friday, and market sentiment was high. One of the sources of this wave of optimism is the Firedancer validator developed by Jump Crypto, which aims to significantly improve Solana’s blockchain scalability.
Data shows that Solana's trading volume has also surged, reaching $4.76 billion, an increase of 24.88%. At the same time, the long-short ratio of 0.9685 shows that traders are optimistic about Solana's short-term trend. If it can break through the resistance of $155, Solana may soon move towards $180.
Memecoin drives Solana network activity and growth
A major driving force behind Solana’s recent price surge is the hot demand for memecoins. The memecoin trading boom has pushed Solana’s total locked value (TVL) to a two-year high of nearly 41 million SOL, up 13% from the previous month. In comparison, Ethereum’s TVL remained largely unchanged.
Memecoins such as Goatseus Maximus brought huge transaction volumes, allowing Solana to surpass Ethereum in terms of trading volume on decentralized exchanges (DEXs), with a 43% increase and total trading volume exceeding $11.16 billion. While memecoins are highly speculative, their popularity significantly drives overall activity on the Solana network.
Can Solana Reach $200? Analysts’ Views
Many analysts believe that this round of Solana's rally is just the beginning. A breakout above the $165 resistance level could push prices to $180 or even $200 by the end of the year. Technical indicators also support this bullish outlook: the 50-period exponential moving average (EMA) at $151.33 provides strong support, while the relative strength index (RSI) remains around 55, showing steady buying interest.
As long as Solana can break above $158.33, the price will have a chance to test the $165 resistance level and move towards $180 and possibly even $200 by the end of the year.
Firedancer and Solana’s long-term potential
Solana’s long-term potential is also supported by its strong ecosystem. Jump Crypto plans to launch the Firedancer mainnet in 2025, which will further enhance Solana’s scalability and performance. A report from VanEck is even more optimistic, predicting that Solana’s price could reach $330 and have the opportunity to occupy 50% of Ethereum’s market value.
Solana's superior transaction speed, efficiency, and growing number of daily active users make it superior to Ethereum in some aspects.
Solana’s Bull Run Continues
As 2024 draws to a close, Solana remains one of the most promising assets in the crypto market. The memecoin craze, growing network activity, and key technological developments all indicate that Solana’s upward momentum is far from over. Investors are closely watching to see if Solana can maintain this strong momentum, break through the $200 mark, and lay the foundation for a new all-time high in 2025.
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