Solana (SOL) Price Prediction: Outperforms All Layer 1 and Layer 2 Networks

On-chain data shows that the Solana blockchain has outperformed all other layer one and layer two networks, a bullish indicator for the token.

On-chain data from defi llama shows that Solana has outperformed all other layer one and layer two networks in terms of revenue generated by decentralised applications (dapps) last week.

Solana’s revenue exceeded $50 million and network dominance reached 51.6 per cent, more than three times that of Ethereum which generated $16 million in the week.

This revenue growth is a bullish indicator for SOL prices as it could boost investor confidence and push up the price of the altcoin.

Solana dapps performed exceptionally well last week, with dApp volume on the Solana network increasing by 50 per cent to $1.61 billion in the last seven days, according to DappRadar.

During the week, transactions reached $138 million and the dapps performed exceptionally well.

This surge may be related to the SOL meme coin craze that has pushed their market capitalisation above $14 million.

Solana price still in decisive phase

Solana price is currently in a decisive phase, trying to break the resistance line of the ascending parallel channel that has rejected it several times.

However, by successfully defending the centerline support, the chances of breaking the upper resistance are opening up, which could trigger further price gains.

In addition, a golden cross formation looks set to occur as the 20-day EMA moves up and approaches convergence with the 200-day EMA.

If these two trend lines continue to show the same pattern and cross, this could trigger the next bullish phase for SOL prices past the $177 resistance level, towards the previous record high of $296, and potentially reach $300.

The RSI indicator also confirmed that momentum is still bullish, with a reading of 69 suggesting strong buying pressure.

This suggests that Solana (SOL) may soon cross $200.

Solana price could continue trending upwards and reach new highs above $300.

Solana’s price action shows that it is trading in a parallel channel and has tested the lower support and centerline multiple times.

However, the buyers have managed to defend the centerline, which is a bullish signal and increases the chances of breaking the upper resistance.

After bouncing off the lower support at $150, the price tested the upper resistance at $177 twice but failed to break through.

Recently, the sellers pushed the price back from the resistance zone, leading to a 6.5 per cent drop in a single day as traders booked profits.

As a result, the price pulled back to the centerline pivot point, which is a strong level of interest for traders.

Moreover, Open Interest continues to show an upward trend despite the recent price drops.

This metric, which measures the total value of outstanding derivatives contracts, continues to rise and recently reached $6.92 billion, the highest level since late January.

The increase in Open Interest indicates high confidence among traders that SOL prices will continue to rise.

This finding underscores Solana’s positive price forecast, as the bulls target the next key level above $200 and reach a new record high above $300.