Solana Price Prediction: Is SOL About to Hit $200 Again As Transaction Volumes Explode?

Solana (SOL) is the laggard of the top 5 in the past 7 days as the token lost 5.7% of its value during this period and currently stands at $177.7.

In contrast, both Ethereum and BNB Coin (BNB) have booked a 1.6% and 2.7% gain even though on-chain data indicates that Solana’s transaction volumes have been rising for six consecutive weeks.

Solana Weekly Volumes Skyrocketed in the Past 6 Weeks

According to data from Artemis, weekly transactions jumped from 674.3 million during the week ended on June 9 to 816.1 million as of last week – a 21% increase.

Solana Transaction Volumes (Weekly) – Source: Artemis

This is a clear indication that network usage has been rising, possibly as competition in the meme coin space between Pump.fun and LetsBonk.fun has pushed volumes higher.

The latter protocol, launched in April this year, has already dethroned the former and now holds a 60% market share in the meme coin creation segment.

This has been a nasty surprise for those who invested in Pump.fun’s recent initial coin offering (ICO) as they saw the value of their investment lose more than 50% in just 30 days.

However, this dApp war benefits Solana as it may push these protocols to ramp up their value proposition and onboard more users and promote initiatives that keep increasing transaction volumes down the road.

No matter who wins and dominates that segment, Solana will benefit.

Key Levels to Watch for The Weekend

In a recent prediction we identified four patterns that favored a big move for Solana that could push it back to the mid-200s.

After a confirmed breakout of a key level at $180, the price has come back to retest this area to see if there are enough buyers out there to ignite the next leg up.

SOL/USD Daily Chart (Binance) – Source: TradingView

Trading volumes have dried up at this point and we have not seen the kind of reaction one would expect from a retest of a key area. Hence, the market may have to move lower to find some liquidity and could aim at the 200-day exponential moving average (EMA) to achieve that.

This indicator is now our key support level to watch and currently sits at 163. As we prepare to enter the weekend – which is typically a low-volume period for cryptos – the odds of a move to that area increase.

However, if we get a strong move above $180, that would confirm the beginning of SOL’s next explosive move and the most likely target for the next few weeks would be $280 if that’s the case.

The Relative Strength Index (RSI) favors a bearish outlook for now as it has moved below the 14-day moving average. However, it has not yet crossed the mid-line, which is typically the ‘sell’ signal for this indicator.

SOL/USD Daily Chart (Binance) – Source: TradingView

Now, heading to a lower time frame, we can see how relevant the $175 level has been to the market in the last 15 days as the price has bounced strongly off this level multiple times.

We are now retesting that area and we can already see some reaction in the price after a descending price channel breakout and its corresponding retest.

All of the signals are there to expect a strong bullish move in the next few hours that could push SOL to $196 and then $204 – its latest swing high.

These support bounces are a clear indication that market participants have been accumulating the token every time it gets to that zone. It is an attractive price level for buyers and that’s all it takes to ignite the next push.