• Solana’s market cap has surged to $88.72 billion, surpassing Binance Coin, making it the fourth-largest cryptocurrency
• Solana (SOL) is currently trading at $188 and could potentially reach $281 if the rally continues, setting a new all-time high
• The rising demand in DeFi, increasing Total Value Locked (TVL) on Solana’s network, and growing number of active addresses indicate a bullish trend for SOL
Solana has been on an impressive run lately, surpassing Binance Coin to become the fourth-largest cryptocurrency by market capitalization. In this article, we’ll explore how Solana’s momentum could propel it to break $200 and potentially hit a new all-time high around $281.
Solana Eyes $200 Breakout
In the past week, Solana has rallied 21.42% from a low of $155 to currently trade around $188. This move has produced three consecutive bullish candles on the daily chart and allowed SOL to break past the 78.60% Fibonacci level at $179.60.
Given the post-retest reversal following an inverted head-and-shoulders breakout, the Solana uptrend appears poised to continue, especially with the broader crypto market recovery. With increasing bullish momentum, the MACD and signal lines have crossed positively on the daily time frame. Additionally, the 100-day and 200-day simple moving averages are on the verge of a bullish crossover.
Fibonacci analysis suggests the next upside targets are around $201.69 (100% Fib level) and $233 to $281 (Fib extension levels). Therefore, Solana could be on track to set a new all-time high if the rally continues past $200.
On-Chain Data Hints at Continued Growth
The rising demand for DeFi has boosted Solana’s Total Value Locked (TVL) to $66.67 billion. Solana is on pace to surpass its 52-week high for network volume of $72.48 billion recorded on October 27.
Additionally, Solana registered 148 million active addresses in October, the most monthly active addresses so far in 2022. As network activity continues growing, Solana is likely to see further increases in transactions and active users amid an ongoing bullish trend.
Conclusion
With strong price momentum and on-chain data pointing to growing network adoption, Solana appears well-positioned for further upside. The cryptocurrency could be on the verge of breaking $200 and potentially challenging its all-time high around $260 if the current rally persists. We’ll have to wait and see if Solana can maintain its parabolic surge.
