A key technical indicator seemingly suggests that the price of Solana, the fifth-largest cryptocurrency by market capitalization, could see an exponential rise otherwise the $4,000 mark in the future.
According to popular cryptocurrency analyst Ali Martinez, based on a cup and handle pattern the price of Solana could move to the $4,000 mark in the future, up from its current level around the $225 mark at the time of writing.
A cup and handle pattern occurs when the price of an asset trends downward and recovers to form a “u” shape, before seeing another slight downward drift that forms the handle. It’s widely considered a bullish signal.
The price of Solana has seen a major recovery form its bear market low in 2022 after the collapse of FTX — a major player in its ecosystem— going from under $10 to its current level and having surged by more than 220% year-to-date. The cryptocurrency has seen a boom of activity within its decentralized finance (DeFi) ecosystem amid an ongoing memecoin trading trend.
According to data from Artemis, over the past year the number of daily active addresses on Solana exploded from around 600,000 to a peak above the 9 million mark, before receding to around 6 million. The surge meant that daily transactions went from around 25,000 to now stand at 50,000.
Meanwhile, the total value locked on the cryptocurrency’s network has exploded from under $1 billion in December 2023 to now hover around the $9 billion mark, as traders move funds from other networks to Solana in a bid to capitalize on the ongoing trend and on SOL’s price rise.
Featured image via Unsplash.
