- Solana (SOL) shows strong potential for a price increase above $190 due to rising network activity, with unique active wallets and transaction volumes surging significantly.
- Technical indicators, including the MACD, support a continued uptrend, though traders should watch for potential pullbacks with support around the 10-day EMA at $156.
Solana (SOL) has been on a remarkable upward trend recently, mirroring Bitcoin’s impressive rally and achieving significant price gains. After reaching a high of $183.38 earlier this week, SOL underwent a minor pullback, but with favorable indicators and on-chain activity, its outlook remains robust. As SOL stabilizes around $176, many analysts believe it could rise nearly 9% to cross the $190 mark if recent momentum sustains.
Catalysts for Solana’s Growth: Rising Network Activity
One key factor driving optimism around Solana’s potential price increase is its recent spike in network activity. The number of unique active wallets (UAW) on the Solana network has doubled in just the past five days, jumping from 3.06 million to 6.19 million. This surge signals heightened interest from investors and increased network utilization, which often correlates with rising demand and price appreciation.
Supporting this trend, Solana’s transaction volume has also been robust. Volume surged from $126.46 million on October 26 to $163.09 million on October 29, after peaking at $341.1 million on October 25. The number of transactions on the network also increased, rising from 17.4 million on October 24 to 19.2 million just days later. These metrics demonstrate a significant uptick in activity, indicating strong interest in the Solana ecosystem.
Technical Indicators Signal Uptrend Continuation
From a technical perspective, Solana remains in a solid uptrend for October, with recent highs near $183. Analysts suggest that if the momentum continues, SOL could breach the lower boundary of the Fair Value Gap (FVG) around $193.69. This would represent a nearly 9% gain from current price levels.
The Moving Average Convergence Divergence (MACD), a momentum indicator, further supports this positive outlook. Currently, the MACD shows green histogram bars above the neutral line, indicating underlying bullish momentum. However, traders should be cautious: if these bars turn red and move below the neutral line, it could signal a reversal.
Potential Pullback and Support Levels
While the outlook for Solana remains optimistic, price corrections are always a possibility in a volatile market. If SOL faces further downward pressure, it could find support at the 10-day Exponential Moving Average (EMA), currently positioned at $156.03. This support level could act as a cushion, potentially providing a base for SOL to resume its uptrend should any short-term pullback occur.
Conclusion
With Solana’s network activity and technical indicators aligning to support a bullish scenario, SOL has a promising path forward. A break above $190 seems within reach if the momentum continues, buoyed by increasing user engagement and trading volume. While traders should keep an eye on the MACD for signs of a trend reversal, the current fundamentals suggest that Solana could achieve further gains in the near term.
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