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Solana has secured a serious breakthrough at $170 and lunged toward $180. With this price recovery, Solana might aim for a $200 price target and reach it in the foreseeable future.
The latest price movement has been accompanied by a significant increase in trading volume, indicating strong buying pressure. The surge from $170 to $180 is notable because it overcame a local resistance level, suggesting that bulls are gaining control. This momentum could propel Solana to the much-anticipated $200 mark.
A closer look at the chart reveals that Solana has moved above the 50-day and 200-day moving averages, which are critical indicators of a bullish trend. The recent break above these moving averages is a strong signal of an upward trajectory. Furthermore, the Bollinger Bands are widening, indicating increased volatility and the potential for further price gains.
In addition to technical indicators, on-chain data supports the bullish outlook for Solana. The number of new addresses on the Solana network has been steadily increasing, reflecting growing interest and adoption. According to Hellomoon, the number of new addresses in May 2024 is ascending, suggesting that more users are joining the network.
Moreover, the weekly transaction fee breakdown shows a rise in non-vote (priority) fees, indicating higher network usage and demand for transaction processing. This increase in network activity demonstrates the growing utility of Solana's blockchain.
However, while the technical and on-chain metrics are encouraging, the market in general is far from euphoria, and the current state of things suggests that Solana and cryptocurrencies alike are unlikely to reach ATHs. Inflows are still far from even this year's top, not to mention 2021's and 2017's bull runs.