This month, the Solana (SOL) network has experienced a notable increase in demand, with daily active users and new account registrations soaring. With only six days left in September, this month is poised to be Solana’s most active in terms of user engagement since the beginning of the year.
This spike in network activity has led to speculation that SOL’s price might hit $160 by the end of the month. But how likely is this scenario?
Solana Sees Increase in Demand
In the last 23 days, the number of unique addresses active in transactions on the Solana network has reached 61 million. This marks a 57% rise compared to the 26.31 million unique active addresses recorded in August. Year-to-date, Solana’s monthly active address count has surged over 900%.
Read more: Solana vs. Ethereum: An Ultimate Comparison
Moreover, a wave of new users has joined the network, drawn by its low transaction fees. In just this month, the number of unique first-time signers engaging on the Solana network has surged to 78 million, reflecting an 85% increase from August’s 40 million.
The significant rise in Ethereum’s average transaction fees in September has further boosted Solana’s appeal this past month.
For perspective, as of September 23, the average transaction fee on Ethereum spiked to $7.03, up from just $0.71 at the start of the month — an increase exceeding 800% in just 24 days. In contrast, the average Solana gas fee ranges between $0.003 and $0.030.
SOL Price Prediction: Bulls Could Drive Price Beyond $160
This increase in demand for Solana has resulted in speculation that SOL’s price may soon reach $160. Current bullish indicators from the altcoin’s momentum metrics lend credence to this perspective.
For instance, SOL’s Relative Strength Index (RSI), which tracks overbought and oversold market conditions, is currently trending upward. This suggests that buying pressure currently exceeds selling activity among SOL investors.
Additionally, the positioning of the dots on SOL’s Parabolic Stop and Reverse (SAR) indicator supports the bullish outlook for the altcoin. This indicator monitors trend direction and highlights possible reversal points, and presently, its dots are situated below SOL’s price. This positioning signifies a robust bullish trend.
Read more: 6 Best Platforms To Buy Solana (SOL) in 2024
With the current market sentiment, Solana’s price is anticipated to continue its upward trend. If buying pressure persists, the altcoin could break through the significant resistance level at $159.96. A successful breach of this point might open the door for SOL to target $186.40.
Conversely, if selling pressure escalates and hinders a breakout, SOL’s price may decline. In that case, the altcoin could retrace back to its support level at $131.32.
Disclaimer
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