Why is Solana (SOL) price up today? The crypto has been making gains upwards of 1% – 4% intraday and has risen over 15% in the past week.
Solana’s SOL price is up today, benefiting from a slight recovery in the overall cryptocurrency market.
This bullish trend follows a 1.6% daily gain in Bitcoin, with various technical and on-chain indicators suggesting further potential for growth.
According to data from Cointelegraph Markets Pro and TradingView, SOL has increased for three consecutive days, rising over 4.5% in the last 24 hours to reach $174.87, currently at $176 at the time of this writing.
The current surge in SOL’s price is likely driven by ongoing demand for Solana tokens within its layer-1 ecosystem, fueled by a memecoin frenzy and recent Solana SPL token airdrops, particularly in the first half of 2024.
The SOL price rally on October 24 reflects the overall growth in the ecosystem’s memecoins, many of which are experiencing double-digit daily gains.
For example, Dogwifhat (WIF), the top Solana memecoin by market cap, has seen a 5.6% increase over the past 24 hours and a 33% rise over the last month.
Other memecoins like Bonk, Popcat (POPCAT), and Cat in a Dog’s World (MEW) have also recorded gains of 2.4%, 12.6%, and 14%, respectively, in the past day.
This uptick in memecoin prices aligns with a significant rise in on-chain activity within the Solana ecosystem, as indicated by data from the Dune dashboard pump.fun.
Today’s growth in SOL price followed a notable increase in the number of transactions on the network.
From October 8 to October 14, daily transactions on the Solana blockchain surged by 29%, rising from 26,288 to 34,027.
Additionally, Dune data shows that more than 40,000 new tokens were created on Solana on October 19, a significant increase from 15,893 on September 15.
The rise in new tokens and transaction volume on Solana indicates heightened network activity and increased user engagement, contributing to greater network usage and revenue.
Data from DefiLlama reveals that Solana’s daily revenue reached approximately $2.3 million on October 23, a 70.6% increase from $1.3 million on October 21.
Furthermore, Solana’s total value locked (TVL) has been on the rise in October, climbing 33% from $5.1 billion on October 3 to $6.8 billion at the time of writing.
This increase in on-chain transactions, new token creation, network revenue, and TVL all point to growing user interaction and demand for SOL tokens, positively influencing its price.
SOL’s price breakout above $160 on October 20 marked a break from an ascending triangle pattern, indicating a bullish continuation trend.
Ascending triangles are typically bullish patterns that resolve when the price breaks above the upper trendline, potentially rising by the distance between the upper and lower trendlines.
Currently, SOL is trading above this triangle near $176, with bulls targeting the triangle’s projected price of $200 — representing approximately a 15% increase from current levels.
However, the relative strength index (RSI) at 71 indicates that Solana may be overbought, suggesting a potential pullback as profit-taking occurs.
Key support levels to monitor include the triangle’s horizontal line at $163 and a support zone around $150.
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Also Read: Analyst Now Predicts A Massive Solana Rally To $4,500
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