Markets
Could Solana’s price reach $1,000 if the cryptocurrency market capitalization rises to $5 trillion?
SOL, the native cryptocurrency of Solana The ecosystem has traded sideways over the past three weeks amid broader market consolidation. A look at the daily chart shows support at $160 and an emerging trend line that is strengthening to maintain the prevailing uptrend and prevent major corrections. Furthermore, Solana price developing a bullish continuation pattern alongside the resumption of on-chain activity suggests the potential for a prolonged rally.
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Solana Network sees significant growth as token creation increases
Solana Price | Tradingview
The long-term trend of the Solana coin has turned bullish again as it has almost recovered the entire loss triggered by the collapse of FTX. An analysis of the daily charts shows that the SOL price is now witnessing a steady rally under the influence of an ascending trendline.
On May 1, the altcoin rebounded from the supporting trendline and rallied 44.5% in six weeks to currently sit at $171. However, with the overall trend uncertain, Solana price is facing downside resistance that limits the buyer’s recovery attempt.
The two converging trend lines revealed the formation of a symmetrical triangle pattern indicating a consolidation trend before the next jump.
Despite the lateral movement of the Price SOL, according to The Block there has been a notable growth in on-chain metrics. 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 increase of approximately 57.41%.
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This significant increase in network activity and user engagement indicates a strengthening adoption and usage of Solana. This recovery is greatly increased by the Memecoin Mania on the net.
In May, the Solana blockchain saw the creation of 455,000 tokens, driven by lower barriers to entry and aspirations to develop successful meme coins, as reported by The Block Pro. Over the course of the year, Solana saw the launch of approximately 1.1 million new tokens, highlighting a solid trend in token generation on the platform.
As of this writing, the price of SOL is currently trading at $172.5, with a market capitalization of $79.3 billion. With an intraday gain of 1.2%, the coin’s price is too high to challenge the upper limit of the triangle.
A potential breakout will accelerate the buying momentum and set the potential target Solana price prediction to $210, followed by $260.
Technical indicator
- Exponential Moving Average: The price of the coin is recovering from the 20 and 50 days EMA indicates an aggressive recovery trend and active accumulation by buyers.
- Average directional index: The declining slope of the ADX accentuates the fact that currency consolidation is helping stabilize prices and regain prevailing momentum.
Bottom line:
The Solana coin has strong future growth potential and is well positioned to excel in the expected bull run. With the market capitalization of cryptocurrencies expected to reach $5 trillion, most major cryptocurrencies are likely to hit new highs. Solana, in particular, shows promising prospects and aims to get closer to the $1,000 mark.
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