Advertisement
Advertisement

Can Solana Price Reach $100? —This $4BN Milestone Offers Key Insights

By:
Ibrahim Ajibade

Solana price reclaimed $75 on Friday, extending its December gains to 20%. A vital on-chain metric suggests that SOL could now shoot for the $100 target.

Solana (SOL) Price

In this article:

Insights:

  • Solana (SOL) price briefly broke above $75 on Friday, Dec 8, bringing its gains for the week above 20%.
  • A 185% surge in trading activity this week has catapulted SOL Trading Volume toward $4 billion, for only the second time this year. 
  • From a technical analysis perspective, the 50-day and 100-day SMA trends show that SOL Golden Cross remains in play, confirming the dominant bullish momentum. 

Solana (SOL) price rally accelerated above the $75 price range on Friday, extending its December gains to 20%. The latest on-chain data trends show that Solana’s trading volume has crossed a major milestone in the process. But will it catalyze more SOL price gains? 

Solana Trading Volume Spiked 185% this Week to Hit $4 Billion Milestone 

Solana price continues to build on its stellar performance over the past month. The SOL native coin has gained 21% this week alone, adding $6.5 billion to is market capitalization in the process. 

As expected, the rapid increase in daily transactions involving SOL has now been identified as one of the major drivers behind the latest price bounce. 

According to Santiment, an on-chain data tracking tool, Solana has recorded an unusually high demand in the crypto markets over the past month. But the trading volume entered second-gear this week, triggering another price breakout in the process. 

Looking at the blue trend line in the chart below, Solana recorded a trading volume of $1.35 billion at the start of the week on Dec 2. But that figure has since ballooned by 185% to hit $4 billion at the close of Friday Dec 8. 

Solana (SOL) Trading Volume vs Price | Source: Santiment
Solana (SOL) Trading Volume vs Price | Source: Santiment

The Daily Trading Volume is a on-chain metric that captures the dollar value the total confirmed transactions involving a particular cryptocurrency on a give day. Typically, strategic crypto investors consider it a bullish signal when there is an increase in fundamental trading activity during a price rally. 

The 185% surge in SOL trading volume this week suggests that the SOL token remains in high demand despite high prices. 

Notably, the volume recorded on Friday is only the second time that SOL trading activity has crossed the $4 billion mark in 2023. The last time it happened around November 11, SOL price skyrocketed by staggering 16% over the next 3 trading days.  

Hence if that pattern reoccurs, the 185% surge in trading volume this week could trigger Solana price breakout toward the $100 territory in the days ahead. 

Forecast: Can Solana Price Reach $100?

Solana price could reach $100 ahead of the upcoming Bitcoin (BTC) halving. From a technical analysis perspective, the 50-day and 100-day SMA trends also confirm that  SOL Golden Cross is now fully in play, confirming the strengthening bullish momentum. 

The Golden Cross is a bullish technical analysis pattern that occurs when a short-term moving average (e.g., 50-day) crosses above a long-term moving average (e.g., 200-day). In simple terms, it signals that traders are now willing to pay more for the asset than in previous weeks or months. 

The chart below shows that Solana’s 7-day SMA Price is now at $65, significantly higher than the 50, 100, and 200-day averages respectively. 

Solana (SOL) Price Forecast | Source: TradingView
Solana (SOL) Price Forecast, Golden Cross| Source: TradingView

If the bulls capitalize on this positive momentum, Solana price could rally toward the $100 territory. However, the $85 resistance could form a major stumbling block. 

But if bullish impact of the Solana trading volume crossing the $4 billion milestone kicks in as observed in mid-November, the bulls garner enough momentum to smash through that $85 resistance zone. 

In the case of a pull-back, the bulls can rely on the 50-day SMA price of  $59 for significant  support.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

Did you find this article useful?

Advertisement