Solana Price Prediction: SOL Hits Key Support at $180 After Major Breakout – Time to Buy?

Solana (SOL) has gone up by 24% in the past 30 days and currently sits at $178 as the crypto market has taken a breather following a strong one-month rally.

There have been some interesting developments within the Solana ecosystem that could influence the project’s trajectory in the mid-term.

The first was Pump.fun’s capital raise. The project managed to raise $600 million via the launch of its official token PUMP.

Market Share of Solana Meme Coin Minting Platforms – Source: The Block

However, PUMP has booked at 37.5% loss compared to the ICO price, primarily as the project has lost its lead in the token-minting space as LetsBonk.fun has captured more than 64% of this segment’s market cap in the Solana blockchain.

This is a major blow for the project and the timing of the launch is interesting. Was Pump.fun anticipating its demise and cashing out at its highest point?

Solana Daily Transactions Rise by 37%

Solana will benefit from a protocol war between Pump.fun, LetsBonk.fun, and Launch Labs (Raydium). They may offer higher rewards to creators to get them to use their platforms, which should drive higher volumes to the network.

Solana’s Daily Transactions (YTD) – Source: Artemis

Data from Artemis indicates that Solana daily transactions have been steadily increasing since they hit bottom at 517 million per day in mid-March. Currently sitting at 800 million TXs per day, this represents a 37% jump on a year-to-date basis.

This significant jump may have been triggered by the rise of top meme coins like Fartcoin (FARTCOIN), Pudgy Penguins (PENGU), and Bonk (BONK) whose prices have exploded after Canary Capital managed to push forward an application for a PENGU ETF.

As long as the meme coin space keeps thriving, the demand for SOL will remain high as transaction volumes will keep rising.

SOL Confirmed Four Bullish Patterns This Week

We had flagged four buy signals in our latest Solana price prediction and set a bullish price target of $280 for the token for the next few weeks.

These signals were all confirmed with the token’s breakout above $285. A retest would further confirm that this is not a fakeout.

Hence, this could be a golden opportunity to grab SOL at the lowest price it could trade for in a while if these signals deliver the expected outcome.

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

The price action in the next few days will either confirm or invalidate this bullish thesis. If the price bounces strongly off $180, that would confirm that both traders and investors expect that SOL will reach a higher price in the future as they are willing to pay a premium to get their hands on the token.

The Relative Strength Index (RSI) has plunged below the 14-day moving average confirming that the uptrend’s strength has weakened but below-average volumes confirm that this is still just a normal pullback.

The hourly chart shows strong support at the $175 area for now while the Relative Strength Index (RSI) has been oscillating in a tight range.

If the price breaks the descending price channel formation identified in this lower time frame, that would confirm a bullish outlook and – potentially – the resumption of SOL’s uptrend.

Hence, traders should keep an eye on how the price action unfolds during the weekend as a bullish breakout could provide an A+ setup with an attractive risk-reward ratio.