Is SOL poised to surpass the $150 mark? Decoding Solana’s network performance
Solana’s digital asset, SOL, has shown positive signs of a bullish trend following a bearish period over the weekend and some uncertainty earlier in the week. The recent performance indicates a potential significant upward movement from its recent low swing. SOL had displayed signs of recovery in the second week of September after facing selling pressure since the last week of August. Although the FED announcement this week caused a temporary disruption in its momentum, the confirmation of rate cuts has helped SOL regain its recovery path.
The next immediate target for SOL appears to be around $150, primarily due to its historical price patterns. Typically, SOL has faced resistance around this price level due to a descending trend. This suggests a possible 10% increase from its current price of $140.
In the last two days, SOL has surged by 11%, with its Relative Strength Index (RSI) crossing above 50%, indicating a bullish uptrend. With the recent rate cuts announcement acting as a catalyst, there is a strong likelihood of significant liquidity inflows into the market. This influx could potentially drive SOL towards or even beyond the $200 mark in the coming weeks, especially if Solana witnesses a resurgence in DeFi activities.
Evaluating the Performance of Solana Network
In recent weeks, the Solana network experienced a notable slowdown, coinciding with the prevailing muted sentiment in August, as reflected in key network metrics. The Total Value Locked (TVL) on the network peaked at $5.48 billion in August before dropping to $4.66 billion earlier this month. However, following the rate cuts announcement, it has rebounded to $4.92 billion, indicating renewed confidence.
On the other hand, Solana’s stablecoin market capitalization took a more severe hit during this slowdown. It reached a peak of $4.067 billion on August 23rd but has dipped to $3.82 billion by September 18th.
The decline in network activity can also be observed in the volume and transaction data. While the network saw daily average volumes exceeding $1.5 billion and over 40 million transactions per day in July, both these metrics witnessed a decline in August.
Despite this, there has been a slight improvement in activity since the beginning of September. These trends hint at a potential resurgence in Solana’s robust on-chain activity, likely driving increased demand for the SOL token.