Solana (SOL) recently recaptured a key support level that played a crucial role in its crazy rise during the 2021 bull run. During that time, Solana's price surged, reaching an all-time high of $270 and solidifying its position as a key player in the blockchain ecosystem. This rapid rise was driven by a variety of factors, including Solana's low transaction costs, scalability, and a strong decentralized application ecosystem (dApps).
Fast forward to now, and Solana has once again reached a critical turning point. After a sharp pullback following its dramatic run-up, the cryptocurrency is showing signs of recovery. By retaking an important price level from its 2021 rally, SOL has caught the attention of traders and analysts, many of whom believe it could be poised for another explosive run-up.
In this article, we’ll explore technical indicators and historical trends that suggest Solana could be on the verge of another major breakout. With growing network activity, increasing active addresses, and bullish signals on the price chart, Solana could be preparing for a repeat of its historical performance. Does this mark the beginning of another run to previous highs or even higher? Let’s take a closer look at the data to find the answer. As of this writing, Solana is trading at $140 (SOL/USDT).
Solana may be repeating a historical pattern
Earlier this year, Solana’s price surpassed $200 on Gate.io, sparking speculation that the cryptocurrency would hit a new record. However, a sharp 36% pullback ensued, leading many to believe that Solana had peaked in this cycle.
Despite the prevailing bearish sentiment, technical signals on the weekly chart tell a different story. Solana recently recaptured the critical $140 support level. The last time a similar situation occurred was in August 2021, and by November of the same year, SOL surged 83% to reach an all-time high of $270.
A key factor in this bullish view is the relative strength index (RSI), which broke above a descending trendline during the 2021 bull run, foreshadowing an explosive rise in prices. Now, a similar RSI breakout appears to be occurring, suggesting that SOL could be on the verge of another major rally.
If Solana’s current trajectory is similar to its past performance, the price could reach $260 again within the next few months, with the potential for further gains.
Growing network activity adds bullish momentum
Another bullish indicator for Solana is its network activity. The number of active addresses on the Solana blockchain recently reached an all-time high, indicating increased transaction participation. An increase in active users generally reflects growing demand for tokens, which could drive further price increases.
If the current trend of network activity growth continues, it will likely provide a solid foundation for SOL’s price growth in the near future.
SOL Price Prediction: Approaching New All-Time High
On the daily chart, Solana looks ready to break through the $151.99 resistance level, especially when the exponential moving averages (EMAs) start to turn around. Currently, the 50-day EMA (yellow) remains above the 20-day EMA (blue), indicating that Solana has not yet fully entered the bull phase.
However, the shorter EMA seems to be about to cross the longer EMA from above, which could foreshadow a major uptick in price. If this crossover occurs, SOL has the potential to break above resistance and find support at $144.64.
Assuming this bullish scenario comes true, Solana’s next target could be around $176.07. If the momentum continues, it could even reach $194.08, paving the way for a further stage of attacking $260 and even higher. However, a pullback to $129.77 would invalidate this bullish outlook and the price could fall further to retest this support level.
Looking ahead to 2025
Solana price prediction for 2025 looks optimistic, driven by the continuous progress and growing adoption in its ecosystem. Experts believe that Solana could reach between $171 and $314 by 2025, fueled by the integration of decentralized applications (dApps) and institutional interest in its blockchain platform. The potential for growth is further enhanced by the launch of Solana Node Engine by Google Cloud and the partnership with Visa for stablecoin settlement.
Solana’s timestamping mechanism allows it to process transactions more quickly and at a lower cost, which distinguishes it from other blockchains such as Ethereum. This, coupled with its growing use in decentralized finance (DeFi) and non-fungible tokens (NFTs), makes it a strong competitor in the blockchain space. If Solana continues to resolve past network reliability issues and deal with regulatory uncertainty, its price could exceed $250 by 2025 and could climb further if the overall cryptocurrency market remains bullish.
However, market volatility, regulatory challenges, and competition from other blockchain platforms are factors that could affect Solana’s price action. Nonetheless, with its strong community support and rapid development, many analysts expect it to become a key player in the blockchain space in the coming years.