Is it possible for SOL to reach a value of $200?
Solana’s price surged to a record high of $186 on March 15, driven by the impressive 400% rally of Dogwifhat, a meme token. This surge in demand for Dogwifhat has also had a significant impact on the market demand for SOL, Solana’s native token. Despite a slight 5% pullback from its peak, SOL has remained strong above the $175 support level. The on-chain data of Solana indicates a strong correlation with Dogwifhat and another meme token called BONK, which suggests that SOL’s price could potentially reach $200 in the coming weeks.
The reason behind Solana’s price increase can be attributed to the growing global demand for meme tokens. WIF and BONK, two popular meme tokens hosted on the Solana network, have played a crucial role in driving this memecoin rally. This increased interest in meme tokens has consequently led to a higher market demand for SOL.
Looking at the price action, SOL had a relatively stable performance in the first two months of 2024, trading within the $100 to $110 range. However, the market sentiment turned bullish in early March as the memecoin frenzy expanded to the Solana network. Since then, SOL’s price has surged by 60%, mirroring the impressive 401% rally of WIF.
Beyond the price charts, other on-chain metrics highlight the impact of the memecoin frenzy on the Solana network. HelloMoon’s daily first signers metric, which tracks the number of new addresses conducting their first transactions on the Solana blockchain, has shown a significant increase in new users since the WIF rally began in late February. On March 14, the network recorded the second-highest number of new entrants, with 815,935 registrations, just 7% below the all-time high. On average, Solana has been attracting 500,000 new addresses daily since the start of March. This influx of new active investors indicates a growing capital inflow to the network, resulting in increased demand for SOL.
As a result of these developments, SOL’s price has surged by 60% and reached a peak of $186 on March 15. With the memecoin frenzy still ongoing, SOL is poised for further growth in the coming weeks.
Based on the on-chain data analyzed, the involvement of new users in the WIF and BONK meme rallies has been a significant driver behind SOL’s price surge. Looking at short-term price action, the Bollinger band technical indicators suggest that SOL could potentially reach the $200 milestone in the near future. The recent trading momentum has been overwhelmingly bullish, with SOL trading significantly higher than the upper Bollinger band. Given that SOL has already surpassed the $185 resistance level, the bulls could now target higher levels, potentially reaching $200 during the next rally. In the event of a bearish downswing, the bulls have a strong support level around the 20-day simple moving average price at $173.
However, strategic investors may exercise caution due to the increased risk of network outages caused by the influx of new users and higher transaction volumes.
In summary, Solana’s price has experienced a significant surge driven by the rally of meme tokens like Dogwifhat. The strong correlation between these meme tokens and SOL indicates a potential for further growth in SOL’s price. The on-chain data and technical indicators suggest that SOL could reach $200 in the near future, although caution should be exercised due to the increased risk of network outages.
