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Solana (SOL) price has staged a strong recovery after forming a double bottom pattern at $120 earlier this month. It has surged by over 49% from its lowest level in May, bringing its total market cap to over $79 billion.
Solana’s ecosystem is doing well
Solana has become one of the most popular networks in the blockchain industry where it has become the biggest alternative to Ethereum.
Data shows that the network has a total value locked (TVL) of over $10 billion and $3.8 billion in stablecoins. That makes it much smaller than Ethereum, which has over $99 billion in assets and $81 billion in stablecoins.
Solana’s TVL is significantly bigger than that of other chains like Tron, Binance Chain, Arbitrum, and Base. The fastest-growing players in the Solana ecosystem are Jito, Marinade, Kamino, Raydium, and Sanctum.
Solana’s decentralised exchanges (DEX) have continued to gain market share in terms of volume. Jupiter, Raydium, and Orca were the biggest DEX platforms in terms of volume in the past 24 hours. They handled tokens worth over $724 million, $718 million, and $365 million, respectively.
Solana has also evolved into the fastest-growing networks in the meme coin industry. Its biggest meme tokens are the likes of dogwifhat, Bonk, Book oF Meme (BOME), and Popcat.
It has also become a major player in the Decentralised Public Infrastructure (DePIN) industry. Data shows that the network hosts some of the top networks in the DePIN industry like Helium and Hivemapper.
Developers love Solana for its low transaction costs and fast speeds. Solana can handle over 2,500 transactions per second (tps) while Ethereum processes less than 30 transactions.
Some analysts believe that the SOL token has room to run ahead of the Firedancer upgrade. In a note, Daniel Cheung noted that the token could rise to $200 soon.
Strength on $SOL has been incredible on this bounce – very clear this is still the best trade of this cycle.
— Daniel Cheung (@HighCoinviction) May 17, 2024
Much more confident here on ability for SOL to reclaim $200.
Frankendancer on the horizon, which paves the way to Firedancer upgrade.
ATHs soon. https://t.co/BTKe6uDgpB
Solana price forecast
SOL chart by TradingView
The daily chart shows that the SOL token has rebounded in the past few weeks. Along the way, it has jumped above the key resistance point at $157.60, its highest swing on April 23rd.
Solana has also moved above the crucial point at $160, the 23.6% retracement point. It has also remained above the 50-day moving average while the Relative Strength Index (RSI) has moved near the overbought point. The Awesome Oscillator has flipped the neutral point.
Therefore, the outlook for the Solana token is bullish, with the next point to watch being the year-to-date high of $204.30. A break above that level will point to more gains, potentially to $250.
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