Forces Behind Impending Parabolic Rally Could Propel Solana (SOL) Price to New All-Time High

Solana (SOL), a leading layer one (L1) blockchain focused on democratizing scalable smart contracts, has experienced significant growth in recent months. With a market cap of approximately $109 billion, the high-cap altcoin is poised to make a substantial surge towards a new all-time high (ATH).

As per the latest data from the cryptocurrency market, the price of SOL is just 26 percent away from its ATH, trading at around $190 during the mid-London session on Wednesday.

Why Solana Will Emerge Victorious in the Web3 Battle

The Solana network has emerged as a major hub for web3, boasting a total value locked (TVL) of about $4.8 billion and a stablecoin market cap of nearly $3 billion. While the Ethereum (ETH) network continues to dominate as the undisputed leader in web3, the Solana network has witnessed a surge in on-chain activity stemming from its DeFi protocols.

According to market data from Defillama, the Solana network has recorded an average trading volume of approximately $1.2 billion within its web3 ecosystem.

The notable increase in on-chain activity on Solana can be attributed to the current frenzy surrounding meme coins such as dogwifhat (WIF), Bonk (BONK), and cat in a dogs world (MEW), which have collectively raised over $45 million in SOL liquidity.

SOL Price Action and Midterm Expectations

Following a positive performance in March, Solana bulls are undoubtedly motivated to maintain a bullish outlook in the coming weeks. On both the weekly and daily time frames, the SOL price against the US dollar has formed an ascending triangle, indicating the potential for a bullish breakout.

A strong breakout above the resistance level around $205 will likely trigger a rally towards the liquidity range between $218 and $230. This range aligns with the 0.5 and 0.618 daily Fibonacci Extension levels.

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Altcoins
Price Analysis