Solana Price Struggles to Break $200 as Network Metrics Soar
Solana (SOL), one of the leading layer-1 blockchain networks, has experienced a robust performance so far in 2024. However, its steady climb toward the coveted $200 price point recently encountered resistance, with SOL pausing after meeting strong headwinds near $185 last week.
On Sunday, May 25, Solana was trading at $173.62, marking a 7.25% decrease from its monthly high, but still showing impressive growth of 82% since the beginning of the year. The resilience in Solana’s price action reflects the ongoing optimism around its rapidly expanding ecosystem and blockchain adoption.
Solana Network Sees Unprecedented Growth in Activity
Recent third-party data highlights that the Solana blockchain continues to outperform its peers in several key metrics. The combined market capitalization for Solana-based meme coins has soared to $14 billion, more than doubling from last month’s low of $6 billion. This surge signals heightened investor interest and increased on-chain activity.
Transaction volume remains a standout metric for Solana. Over the past week, on-chain transactions on the Solana network have grown by 7.3%, totaling a staggering 462.5 million—far surpassing the combined transaction counts of other major blockchains. To compare, BNB Chain reported 80 million transactions, while Base, Tron, and Near Protocol contributed 64 million, 62 million, and 42 million transactions, respectively.
Active wallet addresses on Solana also reached a new milestone, climbing above 34.7 million. This far exceeds competitors: Base currently boasts 9.2 million, BNB 7.8 million, and Ethereum just over 2.1 million active addresses, underscoring Solana’s dominant user engagement.
Solana’s DeFi Growth and Price Technicals
Solana has taken a leading role in the decentralized finance (DeFi) ecosystem as well. The blockchain facilitated $22.7 billion in decentralized exchange (DEX) trading volume over the past seven days and an impressive $97 billion over the last month, reflecting surging demand for Solana-powered DeFi protocols.
Examining the technical outlook, SOL recently bounced from a low of $95.40 in April amid volatility spurred by meme coin speculation, rallying up to $185. Another notable development is the appearance of a double-top pattern around $184.53—a traditional bearish reversal indicator—with key support at $159.45.
On a positive note, Solana’s price is on the verge of forming a golden cross pattern, as the 50-day weighted moving average approaches a bullish crossover above the 200-day average. Historically, this setup often precedes a pronounced upward price surge.
Looking forward, the prevailing Solana price forecast remains optimistic if SOL can maintain momentum above the critical $184.53 level. A breakout above this resistance could propel Solana toward the highly-anticipated $200 psychological mark, edging past the 50% Fibonacci retracement level and bolstering investor sentiment.
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