The Solana price has stabilized over the past few weeks after hitting a crucial support level earlier this month. SOL was trading at $136 on Tuesday morning, up by 45% from its lowest level this month. Let’s explore whether the Solana price can still jump by 265% from the current level to $500.
Solana Has Room for Growth
There are several reasons why the SOL price has room to grow and potentially reach the resistance level at $500.
First, SOL has one of the highest staking yields in the crypto market. It has a staking reward of 8.3%, higher than Ethereum’s 2.8%, BNB Chain’s 1.8%, and Sui’s 2.5%. This number means that investing $1,000 in the token will yield at least $83 per year.
Second, there are signs that Wall Street companies are starting to show interest in Solana. Janover, a small real estate company, has started to invest in Solana. Its goal is to become the MicroStrategy of SOL. Upexi, another tiny company, has announced plans to buy SOL.
These firms believe that Solana is a better alternative to Bitcoin due to its growing ecosystem and its status as the most successful Ethereum rival.
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Further, on-chain data shows that Solana is the most active blockchain in the industry. Over the past 30 days, it handled more than 1.49 billion transactions, with active addresses increasing by 4.6% to 105 million. In contrast, Ethereum had 6.6 million active addresses and had over 35 million transactions.
The Securities and Exchange Commission (SEC) will likely approve a spot Solana ETF later this year. JPMorgan estimates that the fund will have over $6 billion in inflows in the first year.
Solana Price Has Strong Technicals
The SOL price is likely to jump to $500 due to its strong technicals. The weekly chart shows that the coin has formed a cup and handle pattern, a popular continuation sign. Its recent pullback was part of forming the handle section.
A C&H pattern consists of a horizontal line and a rounded bottom. This pattern usually leads to more upside. In this case, its depth is about 96%. Hence, measuring from the upper side of the cup at $260 sets the target at $505.
As such, while it is still too early to predict, there is a high likelihood that the Solana price will eventually surge to $500, either this year or in 2026.
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