Solana price has staged a strong recovery in the past few days as investors bought the dip and as sentiment in the crypto industry improved. The SOL token jumped to $152 on Wednesday, 25% above the lowest point in June, a 25% move.
Spot Solana ETF could be bullish
Solana token has become the most active layer 1 chain in the crypto industry this year as developers embraced its ease of use, speed of transactions, and low transaction costs.
As a result, it has become highly popular among developers in all industries like meme coins and DeFi. Data shows that Solana’s DeFi network saw an 11% increase in total value locked (TVL) in the past 7 days, bringing the value to over $9.87 billion.
Solana’s DEX platforms like Solend, Raydium, Orca, and Jupiter have become some of the biggest players in terms of volume recently. They have overtaken popular DEX networks like PancakeSwap and dYdX.
A crypto analyst has explained why Solana’s price could explode higher soon. In an X post, OxNobler noted that there was a high chance that Blackrock will file for a spot Solana ETF, as I predicted. VanEck, a company with over $85 billion in assets has already applied for the fund.
The analyst also highlighted some of the biggest players in the Solana ecosystem. For example, he noted that Pyth had become the fastest-growing oracle network in the industry with a Total Value Secured (TVS) of over $4.75 billion.
Io.net has become the biggest decentralized AI computing platform while Bonk and Dogwifhat have become some of the largest meme coins in the industry. Jito has also grown to become a leader in liquid staking.
Users love Solana mostly because of its small fees, which is evidenced by its revenues this year. Data shows that Solana has made just $260 million this year while Ethereum, Tron, Bitcoin, Uniswap, and Lido have made over $4 billion.
Solana price forecast
Turning to the 4H chart, we see that the SOL token price has been in a strong recovery after bottoming at $121 last month. It has moved to the 50% retracement point while the 100-period and 50-period Exponential Moving Averages (EMA) have made a bullish crossover.
The token has also moved above the key resistance level at $151.1, its highest swing on June 27th while the Relative Strength Index (RSI) is nearing the overbought level at 70.
Therefore, the Solana token outlook is bullish, with the next point to watch being at $163, the 61.8% Fibonacci Retracement point. The stop-loss of this trade is at $137, the neckline of the double-top pattern at $150.
