The resurgence of the Solana crypto above the $150 mark has sparked renewed interest among analysts and investors, with bullish price predictions once again being entertained. Despite experiencing a significant drop in value during April, Solana has rebounded with a 20% increase in just 6 days in May, indicating a positive trend for the cryptocurrency.
Technical analysis suggests a possible re-test at $140 before a bullish restart, with initial targets set at around $170. Following this, Solana could potentially aim for its all-time high of $259, entering a phase of price discovery. While a bearish scenario is not entirely ruled out, it is unlikely that Solana will drop below the $120 support level.
The recent uptrend in Solana has been accompanied by a notable 37% increase in spot trading volumes, indicating renewed investor interest. Moreover, the open interest metric for Solana on derivatives markets has surpassed $1.6 billion, signaling growing confidence in the cryptocurrency’s future.
Looking ahead, Solana’s price forecast suggests a potential surge beyond $200 by the end of Q3 2024, providing further optimism for long-term investors. On the other hand, recent data reveals that Solana’s decentralized exchanges have recorded over $1 billion in trading volume, surpassing Ethereum in the last 24 hours.
Despite this impressive volume, Solana has yet to surpass Ethereum in terms of market capitalization, with Ethereum’s larger market cap reflecting its established position in the market. While Solana is recognized for its scalability and affordability, Ethereum remains the preferred platform for decentralized applications and development.
However, experts predict significant growth in the DeFi sector, with Solana expected to capture a portion of this market and potentially surpass its previous total value locked (TVL) record. Ultimately, while Solana may not surpass Ethereum in the near future, its positive trajectory and potential for growth indicate a promising outlook for the cryptocurrency industry.
