Since hitting a low of $8 in December 2022, Solana has witnessed an extraordinary surge, recording gains of nearly 2,500%. While this meteoric rise experienced a slight slowdown at the start of the new year, the Layer 1 token has resumed its upward trajectory, reaching new highs in March. As the price has now broken above $200, there’s a surge in bullish on-chain activities, which might result in further price increases. However, traders are concerned regarding a short-term correction.
Key SOL Metrics Hit New Highs
Over the last 24 hours, SOL price witnessed a total liquidation of over $18 million, out of which sellers liquidated around $12 worth of short positions. As SOL price now trades above $200, several key on-chain indicators have turned bullish.
According to data, the total fees on Solana has been on a rise recently as the metric touched an all-time high of $4.17 million. Solana, known for its high throughput and low transaction costs, has long been touted as a leading network in the race to overcome Ethereum’s scalability challenges. The recent surge in fees shows that traders are increasingly using the SOL network, helping the price to break through resistance channels.
Additionally, the number of new addresses has now touched new ATH as it surpassed the 1 million milestone. This could increase SOL’s trading activity, influencing its volatility.
Apart from its price, nearly every aspect of Solana has seen significant growth, including the ecosystem, total value locked, trading volume, and user engagement. Notably, the platform’s meme coin sector has gained considerable attention, leading to the surge of tokens such as dogwifhat (WIF), Myro (MYRO), and Book of Meme (BOME).
Furthermore, Google Trends data indicates that interest in Solana has surpassed its previous peak in late 2021, reaching a new all-time high of 100. This surge in popularity shows the increasing competition of Solana as a strong contender to Ethereum.
What’s Next For SOL Price?
Solana has experienced a significant upward trend over the last few days, reflecting strong demand at higher prices. The price of SOL surged toward $210; however, it faced rejection later and declined toward the $200 mark. As of writing, SOL price trades at $201, surging over 5% from yesterday’s rate.
This surge has driven the Relative Strength Index (RSI) well into the overbought zone, indicating that the SOL/USDT trading pair might have surged too rapidly within a brief period. However, as the RSI has now declined, it has triggered a correction for the SOL price. Bears are currently aiming for a decline below the EMA20 trend line.
Should the price bounce back from the 20-day EMA, it would imply that market sentiment remains bullish and investors are seizing the opportunity to buy on dips. Such a scenario could further boost the chances of a surge above $210. However, this positive outlook could be invalidated if the price falls below the ascending support line.
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