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Solana Network Hits ATH In This Metric Despite Price Dip
Solana holds onto crucial levels of support as the crypto market recovers gradually from the sharp correction earlier in the day. It changes hands at $216.53, with Solana declining intraday at 2.33% so far. However, the cryptocurrency seems to be fundamentally strong and resilient.
Interestingly, the network growth for Solana has reached a new all-time high, highlighting its ever-growing adoption and vibrant ecosystem activity. With this, could the surging strength in the network translate to a breakout rally for Solana?
Solana Recovers from Sell-Off, But Faces Key Resistance at EMA
Solana (SOL) is maintaining critical support levels as the broader crypto market begins to recover from a sharp correction earlier today. Currently trading at $216.53, the token price has experienced a 2.33% intraday decline. Despite the dip, the cryptocurrency continues to demonstrate robust fundamentals and resilience, signaling potential for a sustained rebound.
Like many cryptocurrencies, Solana has seen significant sell pressure around its all-time high of $265. A wave of sell orders, compounded by the broader market’s downturn following a Bitcoin price dump, drove Solana lower to around $205. But SOL bounced back quickly to $210, indicating possible recovery.
This channel breakout was done within a bullish flag pattern formation at the SOL for this price range. With this structure, the minimum expected could be minor upside towards $265 or higher for the upcoming days.
Despite the recovery, SOL has struggled to reclaim positions above its 50-day and 200-day Exponential Moving Averages (EMAs). Bulls are trying to resume the rally, though any significant upward momentum may be short-lived as the year winds down.
Going into 2025, the longer-term price prediction for Solana looks bright. On larger time frames such as the daily and the week, bulls could have a fair shot at gunning for a significant price uptick, likely propelling SOL towards $500. Such speculation could be spearheaded by the much-awaited Solana ETF approval and gradual market confidence in the asset.
The Solana network has reached a new all-time high in light of the general market recovery after the violent pullback. The transactions on the network daily have now surged to 66.9 million, making it higher compared to all other blockchain ecosystems. The rise indicates the growing importance of Solana in the blockchain ecosystem; however, this includes non-vote transactions. Furthermore, Solana has surpassed both Ethereum and Binance Smart Chain in DEX trading volume.
Solana Network Hits All-Time High Despite Price Dip
In the last 24 hours, Solana had a volume of $5.441 billion, while Ethereum had $2.562 billion, and Binance Smart Chain had $2.319 billion. The feat is quite remarkable since Solana’s trading volume is higher than the sum of its closest rivals.
If the bullish momentum is maintained, then the uptrend will test the confluence of the overhead resistance trendline and 38.20% Fibonacci retracement level, which is near $226. A sustained rally with a bullish breakout could drive the price towards the $250 level.
BREAKING: SOLANA DAILY TRANSACTIONS HIT NEW ATH pic.twitter.com/G313oZzAit
— DEGEN NEWS (@DegenerateNews) December 18, 2024
On the other hand, a close below $215 may trigger a retest of the $203.27 support level and further pressure the critical $200 psychological mark.
In a nutshell, Solana is steadily gaining bullish momentum, showing some strength against market volatility. While SOL maintains key supports, the unprecedented growth seen in the network will position it for high targets for ambitious bulls in the coming year.
Can SOL Reach $850 in This Market Cycle?
With its ultra-fast transactions and negligible fees, along with the growing ecosystem of NFTs and DeFi projects, Solana has carved a significant niche in the crypto space. At an unrivaled scalability rate with an adoption rate to match, a Binance analyst said Solana could even hit $850 this market cycle. Ambitious, perhaps, but not entirely impossible should several key factors fall in its favor.
The capability to process 65,000 transactions per second propels Solana into the leadership positions in blockchain scalability. It is way ahead of the competition, such as Ethereum, which makes it the number one choice for both developers and users who seek speed and affordability. Low transaction fees further seal its appeal and lure many projects, especially within the DeFi and NFT sectors.
Key metrics all point to Solana being in the middle of a growth spurt. Growing TVL, increasing staking adoption, and healthy trading volumes paint a picture of continued demand. These indicators point toward a blockchain ecosystem thriving in a competitive market landscape.
Binance analysts remain cautiously optimistic. While $850 might require exceptional catalysts, a more conservative target of around $500 is achievable within this cycle. With the proven track record, scalability, and adoption momentum in place, Solana emerges as one of the hot contenders for significant price appreciation. Whether it can ever reach such ambitious heights will be a function of market dynamics and its ability to sustain growth in a rapidly evolving ecosystem.
Teuta Franjkovic
Teuta is a seasoned writer and editor with over 15 years of expertise in macroeconomics, technology, and the crypto and blockchain sectors.
She began her career in 2005 as a lifestyle writer for *Cosmopolitan* before transitioning to business and economic reporting for renowned outlets like *Forbes* and *Bloomberg*.
Inspired by thought leaders like Don and Alex Tapscott and Laura Shin, Teuta embraced blockchain’s potential, viewing cryptocurrency as one of humanity’s most transformative innovations.
Since 2014, she has specialized in fintech, focusing on crypto, blockchain, NFTs, and Web3. Known for her strong collaboration and communication skills, Teuta also holds dual MAs in Political Science and Law.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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