A renowned crypto analyst has sparked investor interest in Solana (SOL) with a prediction that could see its value soar past the $200 level, a feat not achieved since November 2021. This forecast comes on the heels of Solana defying a significant sell signal, suggesting a 70% surge may be on the horizon, hinting at a bullish phase before the next dip.
Price Momentum and Market Dynamics
Analyst Ali Martinez has pointed to Solana’s technical indicators, noting the cryptocurrency overcame a crucial sell signal on its daily chart, potentially flipping it into a bullish trend. Enthusiasm builds as SOL punches through the crucial $198 resistance marker, aligning with the possibility of a robust price escalation.
Martinez recalls a parallel situation in December last year when Solana witnessed a dramatic 70% price hike following a similar technical pattern. He suggests that Solana is primed to replicate that ascent, with an intact upward trajectory as its price hovers above the $200 benchmark. Martinez anticipates even higher peaks for Solana before the emergence of another cycle of selling pressure.
Network Activity Surges Past Ethereum
Over recent days, the Solana blockchain has outpaced Ethereum in network activity, drawing significant attention. This spike is attributed to a rising demand for Solana-based memecoins, particularly the Book of Meme (BOME), which saw its market value skyrocket to $1.45 billion within 56 hours of its launch on March 14th. Alongside this, Solana’s decentralized finance (DeFi) sector has expanded significantly, posting an 80% increase in total value locked (TVL) over the past month, elevating its DeFi TVL to the highest point in two years, now standing at $4.30 billion.
Meanwhile, Solana’s price volatility continues to capture headlines. On March 18th, the SOL price climbed by 7.13% to $204, and its market capitalization topped $91.56 billion, although trading volume dipped by 12.17% to $10.74 billion within 24 hours. As a result of the price surge, short sellers faced a wave of liquidations, with $17.67 million worth of positions, $11.77 million of which were shorts, liquidated in the same period.