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On December 18th, Wednesday, the Solana price plunged over 4% to trade at $213. The surge in selling followed broader market sentiment as Bitcoin reverted from $108k resistance. However, crypto analysts believe this is a temporary pullback for market buyers to regain recovery momentum. With a record surge in Solana’s DApp revenues and a bullish chart pattern, the SOL coin is poised for major reverses.
According to Coingecko, Solana’s market cap stands at $102.5 Billion, while 24-hour trading is at $6.6 Billion.
Key Highlights:
- Solana’s ecosystem achieved a record $365 million in total DApp revenue for November, as per Syndica research.
- A bullish reversal pattern cup and handle hints at a temporary correction ahead before SOL buyers replenish the bullish momentum.
- Solana price correction could witness suitable demand pressure at the $187 and $170 levels, coinciding with the 50% and 61.8% Fibonacci retracement levels.
Solana Price Gain Momentum Amid Record $365M DApp Revenue
Solana’s ecosystem recorded a significant milestone in November, with total decentralized application (DApp) revenue hitting a record high of $365 million, according to Syndica research.
The primary driver of this unprecedented revenue was Pump.fun, which emerged as Solana’s first DApp to exceed $100 million in monthly revenue, reaching a remarkable $106 million.
The decentralized exchange (DEX) platform Raydium contributed significantly to the ecosystem, generating $32 million in revenue during the same period. While the perpetual contract platform Jupiter recorded $17 million in revenue.
The impressive revenue growth reflects the broader adoption of Solana-based applications, which could act as a significant boost for SOL price.
Cup and Handle Formation Sets Stage for $500 Breakout
The Solana price weekly analysis shows the formation of a cup and handle pattern. Under the influence of this classic reversal pattern, the altcoin witnessed a long U-shaped recovery over the past three years.
In the last four weeks, the SOL coin witnessed the pattern’s temporary correction phase— Handle, which plunged the asset from $264 to $207. If the pattern holds true, the sellers could extend the price correction from $187 to $170, seeking suitable support for reversal.
If successful, the buyers drive a 25% recovery to challenge the $260 neckline resistance. A potential breakout from this barrier will accelerate the buying pressure for an extended rally to $500.
Also Read: Solana Price Rally to $300 Faces Headwinds Amid Whale’s Multi-Million Cashout