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Solana’s price has surged above $100 on January 18th, indicating a potential rally towards $120. The approval of the Bitcoin spot ETF has redirected investor capital towards altcoins, leading to increased demand for Layer-1 projects like Solana, Ethereum, and Cardano.
Solana has experienced a surge in network usage, with its daily active user count reaching 429,162 addresses on January 17th, the highest in 2024. This increase in network participation is seen as a strong bullish signal, suggesting that Solana’s growth is driven by fundamental demand rather than speculation.
Moreover, Solana’s proof-of-stake validators have seen a significant rise in fees, confirming the increased network usage. The fees paid to validators rose from $314,789 on January 14th to $519,885 on January 17th. This rise in fees could incentivize stakers to stake more SOL coins, further amplifying the price rally.
From an on-chain perspective, Solana’s price uptick is attributed to the rising network usage, and with key indicators pointing upwards, the price is expected to rebound towards $120. The parabolic stop and reverse (SAR) indicator also supports this bullish stance, with the dots pointing towards $106. If the bulls can gather enough momentum to break past the resistance at $106, a move towards $120 is likely.
However, a downside risk exists if the bears push the price below $90. Nonetheless, given the increasing network demand, it is expected that the price will avoid a significant downturn in the short term.
