Since October 2023, Solana's price surged over 368% and network growth fueled optimism. Research analyst Ally Zach reports doubled active addresses and Total Value Locked, plus the success of consumer apps and the boosted DeFi sector through airdrops and new token launches. Users now trade more diversely, moving away from just airdrop farming. Crypto analyst Ali Martinez predicts a possible SOL rally to $90, based on chart patterns, but cautions to watch for dips if support at $60 fails.
Our analysis of the situation
Since October 2023, Solana (SOL) has become a significant player in the crypto space, often dubbed the Ethereum killer. The network has exhibited substantial growth, especially in terms of price action, with SOL's price skyrocketing over 368% year-to-date, from $7.95 in 2022 to a staggering $64.20. But the crucial question looms: does this impressive price surge truly reflect fundamental growth, or are there underlying discrepancies?
Growth in Network and Price Action Sparks Optimism
An analysis by Ally Zach, a research analyst at Messari, sheds light on SOL's remarkable progress. Not only has the price of SOL surged sixfold since December 2022, but active addresses and Total Value Locked (TVL) have also doubled.
Initially positioned as a decentralized finance (DeFi) hub, Solana has expanded its scope, introducing innovative infrastructure and tools such as compressed non-fungible tokens (NFTs), which have catalyzed the emergence of new consumer applications.
Solana's shift towards consumer applications saw a significant uptick in user engagement, especially following the "breakpoint event" in early November. The event reignited the DeFi sector, buoyed by airdrops and new token launches, leading to a surge in market caps and DEX TVL. Notably, new DEX users on Solana exhibit distinct trading behaviors, pointing to a more robust and sustained user base.
Looking Ahead: Potential SOL Rally to $90
Renowned crypto analyst Ali Martinez has identified a compelling price pattern for SOL, suggesting the potential for further gains. An ascending triangle formation on the 12-hour chart hints at a continuation pattern, which typically denotes future upward price movements.
The pattern suggests that SOL's price has been consolidating within a tightening range, with a resistance level around $68.2. A break above this level could potentially propel the price towards the $90 mark. However, Martinez advises caution, emphasizing the need to monitor the $60 support level closely to avert potential downside risks.
Wrapping Up
As SOL's network and price dynamics continue to evolve, it is evident that the expanding user base and the prospect of sustained growth in the DeFi sector position Solana as a formidable force in the crypto sphere. With potential for further price appreciation, SOL's journey seems poised for an intriguing trajectory in the near future.
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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