Solana price has surged hard and moved to a record high as the network continues to fire on all cylinders. The SOL token has risen for three consecutive weeks, reaching a high of $260, up by over 3,245% from its lowest point in 2022, bringing its market cap to over $117 billion.
Solana price could explode higher
Technicals suggest that the SOL price is about to explode higher in the coming months. On the weekly chart below, we see that the coin has been forming a cup and handle pattern, which is a popular continuation sign.
A C&H pattern is formed when an asset rises to a peak, then drops gradually, and then forms a rounded bottom and retests the previous peak. In Solana’s case, the first peak was at $260, its highest level in 2021, which it has retested this week. The lower side of the pattern was at $8.42, its lowest point in 2022.
The best approach to estimate the profit target in a cup and handle pattern is to measure the upper and lower sides of the cup. In SOL’s case, the distance was about 2,863%. As such, that move points to an eventual rally to as high as $7,000 in the long term.
Further supporting this view is the fact that the coin has moved above the key resistance level at $210, its highest level in March this year. It has also jumped above the 50-day and 200-day Exponential Moving Averages (EMA), while oscillators have pointed up.
Therefore, the SOL token will likely remain in this range or even pull back to form the handle section and then bounce back. On the flip side, a crash below the support at $110 will invalidate the bullish view.
Solana’s booming ecosystem
The main catalyst for the SOL price is the fact that it has a booming ecosystem in areas like meme coins and decentralized public infrastructure (DePIN). The total market cap of all Solana meme coins has jumped to over $21 billion. They include tokens like Bonk, Dogwifhat, Popcat, and Peanut the Squirrel.
These tokens have helped to push Solana’s DEX networks to their highest levels on record. Data shows that these networks have processed over $92 billion in coins this month, more than twice what Ethereum has processed. Its 24-hour volume rose by 44% to $6.97 billion, while Ethereum’s fell by 33.7% to $2.93 billion.
Solana has also collected substantial fees this year. According to Token Terminal, Solana’s fees have jumped to a record high of $548 million this year. This trend may continue as the network continues booming, helped by its meme coin ecosystem.
Read more: Ethereum Price Prediction: Here’s Why Solana Could Flip ETH
