When will solana reach $200? Businessman gives his opinion
Key facts:
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From technical analysis, SOL reflects signs of monthly reversal to an uptrend.
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SOL is one of the best performing cryptocurrencies of the week.
The price behavior of the cryptocurrency Solana (SOL) is showing strength to return to 200 dollars (USD). This is the highest price in two years that it reached two months ago.
Precisely, this week, the price of SOL exceeded the lateralization phase that it maintained for a month between USD 120 and USD 160. This upward movement can be seen in the following graph.
Currently trading at USD 172, SOL records a price increase of almost 18% in seven days. As the table shows, this places it as the fifth best performing crypto asset in this period of the hundred with the highest market capitalization.
Regarding the monthly performance, SOL maintains in May the support zone of the previous two months around USD 119. This is distinguished in the following graph by Daniel Cheung, co-founder of the cryptoasset market hedge fund, Syncracy Capital .
The businessman highlights that “the strength in SOL has been incredible in this rebound.” He maintains that his performance reflects “much more confidence” in the market’s ability to recover $200.
“I think SOL will potentially return to around $200 by the end of the month,” Cheung emphasized. He believes that an increase to such a figure would imply a complete reversal in monthly performance and a sign that is ready for a new all-time high (ATH).
For the market specialist, this panorama it could happen with Frankendancer on the horizon. This is an expected update to the Solana network that seeks to improve the scalability of the network, reinforcing its adoption.
Currently, SOL is 33% away from the all-time high price it reached during the previous bull cycle in November 2021, which was $260.
SOL Price Reacts Rising Amid Its Network Momentum
SOL’s rise this week comes amid the momentum its ecosystem is gaining. As reported by CriptoNoticias, Solana has positioned itself as the network with the most weekly transactions. This milestone has occurred amid an increase in non-fungible token (NFT) trading and decentralized exchange (DEX) volume.
Something that motivated this scenario is that Jupiter, Solana’s largest DEX, integrated the Clone protocol to allow trading of tokens not native to the network. Consequently, not only the price of SOL was boosted, but also that of the exchange, JUP. With a seven-day increase of 13%, it was among the ten best-performing crypto assets.
Additionally, this week, the MarginFi protocol announced that it will launch a decentralized stablecoin called XBY on Solana before June. This is something that also encourages greater development in the network, which could have motivated the rise of the cryptocurrency.
Among these advances, bitcoin (BTC) reached its one-month high above $67,000 this week, which motivated the rise of cryptocurrencies in general, including SOL. Therefore, the behavior of bitcoin remains key to its future.
