Markets
Could Solana Price Reach $1,000 If Crypto Market Cap Skyrockets to $5 Trillion?
SOL, the native cryptocurrency of Solana ecosystem has been trading sideways for the past three weeks amid broader market consolidation. A look at the daily chart shows support at $160 and an emerging trendline is strengthening to maintain the prevailing uptrend and avoid major corrections. Furthermore, Solana price developing a bullish continuation pattern alongside the recovery in on-chain activity suggests the potential for an extended recovery.
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Solana Network Sees Significant Growth as Token Creation Increases
Solana Price | Trading view
Solana coin’s long-term trend has turned bullish again as it has almost recovered all of the loss triggered by the FTX collapse. An analysis of the daily charts shows that SOL price is now witnessing a steady recovery under the influence of an ascending trendline.
On May 1, the altcoin rebounded from the support trendline and rose 44.5% in six weeks, currently trading at $171. However, with the broader trend uncertain, Solana price faces resistance downward trend that limits the buyer’s recovery attempt.
The two converging trendlines revealed the formation of a symmetrical triangular pattern indicating a consolidation trend before the next bounce.
Despite the lateral movement in SOL Price, there has been notable growth in on-chain metrics according to The Block. This analytics tool shows that the number of active addresses on the Solana network has increased from 1.08 million on May 2 to 1.7 million today, marking an approximate 57.41% increase.
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This significant increase in network activity and user engagement indicates a strengthening in Solana adoption and usage. This recovery is significantly driven by Memecoin Mania on the Network.
In May, the Solana blockchain saw the creation of 455,000 tokens, driven by lower entry barriers and the aspiration to develop successful meme coins, as reported by The Pro Block. Over the course of the year, Solana witnessed the launch of approximately 1.1 million new tokens, highlighting a robust trend in token generation on the platform.
At the time of publication, the price of SOL is currently trading at US$172.5, with a market value of US$79.3 billion. With an intraday gain of 1.2%, the coin’s price is rising too high to challenge the triangle’s upper limit.
A potential breakout will accelerate the buying momentum and set the potential target for Solana Price Prediction to $210, followed by $260.
Technical Indicator
- Exponential Moving Average: Coin price recovering from 20-day and 50-day periods EMA indicates an aggressive recovery trend and active accumulation by buyers.
- Average Directional Index: The decline in the ADX slope highlights that monetary consolidation is helping to stabilize prices and recover the prevailing dynamics.
Conclusion:
Solana coin has strong future growth potential and is well positioned to stand out in the expected bull run. With the market value of cryptocurrencies expected to reach $5 trillion, most major cryptocurrencies are likely to reach new highs. Solana, in particular, presents a promising outlook and aims to approach the $1,000 mark.
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