Solana (SOL) Crypto Price May Be Poised to Rally by Targeting $294

Solana (SOL) crypto has remained one of the top-performing assets in the crypto market despite recent price fluctuations.

Solana (SOL) crypto has remained one of the best-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 multiple times but has yet to break through.

However, despite facing repeated rejections around $180, the price has managed to remain above the channel’s midline, which serves as a strong support level.

Moreover, a golden cross may also be forming, with the 20-day EMA getting 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 already surpassed the resistance at $177. This breakout could pave the way for a continuation toward $200 and potentially the 127.20% Fibonacci extension target at $294.

At the time of writing, the Relative Strength Index (RSI) stands at 69, suggesting that buying interest is still relatively strong. This RSI reading, despite being close to overbought levels, indicates that momentum is with the buyers. The market continues to rise with volume, and we can expect more buying strength to support the subsequent move.

Network Usage and dApp Revenue Strengthen Outlook

Solana has been outperforming all major blockchain networks in dApp-related revenue, with earnings exceeding $50 million for the past week alone, according to the data from DeFiLIama.

To put this into perspective, the revenue generated by Ethereum and other top blockchains during the same period is a fraction of Solana’s earnings. In terms of market share, Solana holds a dominant 51.6% in dApp revenue, compared to Ethereum’s 14.23% share.

The high level of activity on various decentralized platforms has also led to increased usage of the Solana network. DappRadar's data highlights a 50% surge in the volumes of dApps over the last week, with a total of $1.61 billion.

Within the same period, the network has processed over $138 million in transaction value. This increase contributes to the broader bullish narrative around the long-term utility of the Solana ecosystem.

Recently, there has also been a surge in interest in SOL-based meme coins, which is fueling further growth in the network. These tokens have collectively driven the total market capitalization to over $14 million.

Although this is a speculative factor, it demonstrates the growing attention and activity surrounding the Solana ecosystem, which could help sustain interest and activity in the coming weeks.

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 were observed on April 30 and from May 6 to May 12.

Traders who were overleveraged suffered price reversals. These forced liquidations are common during periods of rapid price correction.

On the other hand, short liquidation also rose sharply during unexpected price increases. Major short positions were liquidated on April 22 and May 10, with each event realizing losses of over $9 million.

The largest combined liquidation event occurred on May 8, to the tune of over $18 million as both long and short positions were wiped out by the rapid market swings on this day.

These patterns indicate excessive speculative trading and leverage in 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.