Source: Cointelegraph
Original: “Solana Network Activity Surge and Megaphone Chart Pattern Set SOL Price Target at $210”
Key Points:
The price of Solana (SOL) tested its key resistance level of $180 earlier this week, but the altcoin failed to establish a position above that level. Over the past few days, the SOL price has consolidated above $170, but it has declined by 5.65% since May 14.
Including the recent slight pullback, Solana has formed a megaphone pattern on the 4-hour chart, a classic technical formation indicating that volatility is increasing.
The chart shows that the upper resistance trend line of the megaphone is around $185, aligning with the immediate resistance at $180. If a breakout above this level is confirmed, SOL could move towards the first target of $210, derived by measuring the widest part of the pattern and projecting it upward from the breakout point.
If momentum continues, the next target will be $210, representing a 21% increase from the current price. A breakout above $200 would also trigger a psychological barrier, potentially attracting further buying pressure.
However, it is important to note that the megaphone pattern can also be bearish. If it fails to break above $180, it could lead to a price pullback to the 100-day Exponential Moving Average (EMA) at $161 or near the lower support level of the pattern at $150. Confirmation of volume at the time of the breakout is a key trigger factor, as low volume may indicate a false breakout, leading to an immediate reversal of the initial directional bias.
Solana is experiencing a resurgence in investor interest, with Glassnode reporting a 4% to 5% increase in 30-day capital inflows, comparable to the growth of XRP (XRP). This trend reversal after months of outflows indicates new demand for the Solana ecosystem. The realized capital reflects the value of the last transactions of the token, which increased by $4 billion to $78.5 billion on May 14, showing growth momentum for SOL.
Data from the Top 7 ICO report further validates Solana's strong performance, ensuring its position as the second-ranked blockchain by trading volume. In the past week, Solana processed an impressive 731 million transactions, second only to Hyperliquid's 1.79 billion. In contrast, Base recorded 77.1 million transactions, highlighting Solana's existing advantages and popularity compared to other chains.
Related: The “Fart” Storm on the Solana Chain: Fartcoin Ignites a New Peak in the Meme Coin Market
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research before making decisions.
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