Is Solana (SOL) Price Gearing Up For $294 Rally?

Key Insights:

• Over 11.04M wallets now hold at least 0.1 SOL, which signals a growing retail adoption on the Solana network and can be good news for Solana crypto price.
• Solana dApps generated $50M in weekly revenue, leading all L1 and L2 blockchains with a 51.6% market share.
• SOL open interest hit $6.92B, the highest since January, showing increased trader exposure despite recent Solana price pullbacks.

Solana (SOL) crypto has remained one of the top-performing assets in the crypto market despite recent price fluctuations. After facing rejection at the $180 mark, Solana price consolidated just below key resistance levels at press time.

With rising network activity, surging dApp revenue, and bullish technical patterns, the token may be preparing for a potential rally toward $294 in the coming weeks.

Solana Crypto Price Technical Indicators Suggest Bullish Momentum

Solana’s price action continues to trend within an ascending parallel channel on the daily chart. The token has tested the upper boundary of this channel several times but has not yet broken through.

Despite facing repeated rejections around $180, the price has managed to stay above the channel’s midline. That serves as a strong support level.

A golden cross may also be forming, with the 20-day EMA moving closer to the 200-day EMA. If this crossover happens, it could support a sustained upward move.

At the current level of $183.57, Solana price has surpassed the resistance at $177. This breakout could open the path toward $200 and potentially the 127.20% Fibonacci extension target at $294.

When writing, the Relative Strength Index (RSI) was at 69. It suggested that buying interest was strong. This RSI reading, despite being close to overbought levels, revealed that momentum was with buyers. The market kept rising with volume supporting the subsequent move.

Network Usage and dApp Revenue Strengthen Outlook

Solana has been growing rapidly compared to all big blockchain networks in dApp-related revenue. According to the data from DeFiLIama, the earnings for the past week were over $50 million. That’s more than Ethereum and other competitors. Market share of Solana was 51.6% in front of Ethereum, which had 14.23%.

The high level of activity on different decentralized platforms has led to increased usage. The volumes of dApps in DappRadar increased by 50% in the last week, with a total of $1.61 billion.

Within the same period, the network had processed more than $138 million in transaction value. This increase contributes to the bullish story around the utility of the network over the long term.

The recent growth of the network has also been attributed to an increase in SOL-based meme coin activity. These tokens have driven the total market capitalization to over $14 million.

Albeit speculative, this practice portrays generally growing attention towards the Solana ecosystem. It could contribute to the sustenance of interest through the blockchain.

Open Interest and Wallet Growth Point to Continued Engagement

The open interest of Solana increased to a 2.5-month high of $6.92 billion. This figure refers to the net outstanding value of derivative contracts.

It is the total outstanding value of derivatives on which the traders have made an exposure. That implies the traders are taking more exposure to SOL because they expect volatility or a price adjustment.

Increased open interest and a maintained funding rate indicate that traders are bullish about future price movements. If the market reverses up, these positions may compound gains in long trades that increase in value or are purchased.

Source: X

Wallet data also supported a growing user base. More than 11.04 million wallets contained at least 0.1 SOL at press time.

This increase in holders indicates that retail is sustained and builds the base for network adoption. A larger base of active users usually contributes to the overall stability and ambit of a blockchain network.

Liquidation Events Reveal Trader Behavior Around Solana Crypto Price

There have been several significant liquidation events in the recent past due to movement in prices both on long and short positions. Long liquidations zoomed on April 30 and from May 6 to May 12.

Traders who were overleveraged suffered price reversals. These forced liquidations are common during fast corrections.

On the other side, short Liquidation also rose sharply during unexpected price increases. Major short positions worth over $9 million were cleared on April 22 and May 10.

The largest combined liquidation event occurred on May 8, totaling more than $18 million in liquidations. Both long and short positions were wiped out on this day by rapid market swings.

These patterns indicate excessive speculative trading and leverage on the market. Although such volatilities bring along the risk, they also act as an underlying stage for powerful breakouts when the direction of a price is established.

If Solana crypto price breaks its resistance zones, these liquidation levels may help it move higher towards the $294 level.

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