Backed by the general crypto market gains and increasing investor interest in meme coins launched on the Solana (SOL) blockchain, the network’s native token has registered stellar performance in the current rally.
Indeed, SOL investors are anticipating the next price movement that could pave the way for a potential record high above the $200 mark, as the community remains super bullish.
Notably, the growth in SOL prices has coincided with a significant on-chain movement of the token. Particularly, data provided by Whale Alert on March 29 indicates that 1,757,028 SOL tokens worth approximately $332 million were moved between unknown wallets.
SOL price analysis chart. Source: TradingView
In the meantime, Solana is likely to be swayed by activities related to the collapsed FTX crypto exchange. Notably, the management of the bankrupt trading platform will sell its balance of 41 million in Solana to institutional investors at around a $60 discount. Indeed, SOL is likely to be swayed once the tokens hit the market.
Solana outshines Ethereum
Furthermore, on-chain metrics point to a bullish Solana price outlook. Specifically, data from the blockchain analytics platform Artemis indicates that as of March 30, Solana’s weekly transfer volume for stablecoins surged to $364.7 billion, surpassing Ethereum’s (ETH) reported volume of $152.99 billion.
Crypto weekly transfer volume for stablecoins. Source: Artemis
This metric bodes well with Solana’s aspiration to emerge as a possible competitor to Ethereum as a decentralized finance (DeFi) platform.
Elsewhere, it will also be interesting to monitor how the upcoming Solana Saga smartphone will play out. The token’s rally was partly attributed to the demand for the first version of the device, which has been touted as crypto-friendly.
SOL’s bearish fundamentals
Additionally, Solana faces several headwinds regarding its potential march to a new all-time high. For instance, the network has faced perennial concerns about outages that might deter developers.
At the same time, with the meme coins launched on the platform acting as key catalysts, there is a call for caution, considering that such tokens typically have no underlying fundamentals and are likely to see corrections.
Meanwhile, by press time, Solana was trading at $196 with daily gains of almost 7%. On the weekly chart, SOL is up 12%.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
