Solana price has staged a strong recovery in the past few days as investors bought the dip and as sentiment in the crypto industry improved. The SOL token jumped to $152 on Wednesday, 25% above the lowest point in June, a 25% move.
Spot Solana ETF could be bullish
Solana token has become the most active layer 1 chain in the crypto industry this year as developers embraced its ease of use, speed of transactions, and low transaction costs.
As a result, it has become highly popular among developers in all industries, such as meme coins and DeFi. Data shows that Solana’s DeFi network saw an 11% increase in total value locked (TVL) in the past seven days, bringing the value to over $4.57 billion.
Solana’s DEX platforms, Solend, Raydium, Orca, and Jupiter, have recently become some of the biggest players in terms of volume. They have overtaken popular DEX networks like PancakeSwap and dYdX.
A crypto analyst has explained why Solana’s price could explode higher soon. In an X post, OxNobler noted a high chance that Blackrock would file for a spot in Solana ETF, as earlier predicted by Bankless Times. VanEck, a company with over $85 billion in assets has already applied for the fund.
The analyst also drew attention to the rapid growth of Pyth, which has emerged as the fastest-growing oracle network in the industry. With a Total Value Secured (TVS) of over $4.75 billion, Pyth’s growth underscores the potential of the Solana ecosystem.
Meanwhile, Io.net has become the biggest decentralized AI computing platform, while Bonk and Dogwifhat have become part of the largest meme coins in the industry. Jito has also grown to become a leader in liquid staking.
Users love Solana mostly because of its minimal fees, which is evidenced by its revenues this year. Data shows that Solana has made just $260 million this year while Ethereum, Tron, Bitcoin, Uniswap, and Lido have made over $4 billion each.
Solana price forecast
Turning to the 4H chart, we see that the SOL token price has been in a strong recovery after bottoming at $121 last month. It has moved to the 50% retracement point while the 100-period and 50-period Exponential Moving Averages (EMA) have made a bullish crossover.
The token has also moved above the key resistance level at $151.1, its highest swing on June 27th, while the Relative Strength Index (RSI) is nearing the overbought level at 70.
Therefore, the Solana token outlook is bullish. The next point to watch is $163, the 61.8% Fibonacci Retracement point. The stop-loss of this trade is at $137, and the neckline of the double-top pattern is at $150.
