Solana network activity surge and ‘megaphone’ chart pattern set $210 SOL price target

What you need to know:

• Solana created a megaphone chart with a possible $210 target price.

• Solana’s growth in the ecosystem highlights renewed interest from investors with a cap realized increase of $4 billion and 731 millions transactions.

Solana (SOL) The price of the altcoin tested the key resistance level at $180 this past week. However, it failed to gain a foothold above that mark. SOL prices are down 5.65% from May 14 to $170. Over the last few days SOL’s price has been consolidated over the $170 level.

Solana, including the minor drop, has created a Megaphone Pattern on the 4-hour Chart, which is a classic setup that indicates increasing volatility.

This chart shows the upper trendline of resistance for megaphones at around $185. It is aligned with $180, which represents immediate resistance. SOL’s breakout could push it to the $210 target, which is the result of measuring the width of the pattern from its breakout point and projecting upwards.

If the momentum continues, then $210 will be next, which represents a 21% increase from current prices. If the price breaks above $200, it will also set off a psychological trigger that may lead to further purchasing pressure.

It is important to remember that megaphone patterns can be both bullish and bearish. If $180 is not broken, a move back to the 100-day moving average (EMA), at $161, or to the lower support of the megaphone pattern near $150 may occur. The volume confirmation is key to the breakout, since low volumes could indicate a false movement, leading to a reversal in the direction of bias. 

Related: Solana network and DeFi activity suggest SOL price rally will continue

Solana’s 4 billion dollar realized cap increase and 731 millions transactions indicate momentum

Solana’s investor interest is reviving, Glassnode Reporting a 4%-5% increase in capital inflows over the past 30 days, which is similar to XRP (XRP) growth. This trend reversal, after months of outflows signals renewed interest in the Solana eco-system. On May 14, the realized cap (which reflects a coin’s most recent transaction value) is $4 billion higher at $78.5 billion, showing SOL’s increasing momentum.

Solana has been ranked as the 2nd most active blockchain in terms of transactions, according to data from a Top 7 ICOs report. In the last week, Solana processed Hyperliquid is second with 1,79 billion, but Solana has 731 million. Base, who logged 77.1 Million transactions, is significantly less than Solana. This highlights the chain’s advantage over other chains.

Related: Spot Bitcoin ETF inflows fall, but BTC whale activity points to bull market acceleration

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.