Will Solana Price Reach $200 in November?

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As a seasoned analyst with over a decade of experience in the financial markets, I’ve learned to read trends and patterns like a book. The current situation with Solana (SOL) is intriguing, given its seven-month struggle to break above the $200 psychological level.

For the last seven months, Solana’s price has been moving up and down without managing to stay above the significant $200 mark. This sideways movement has sparked some uncertainty among investors as they wait for buyers to take the initiative. However, the fourth quarter could bring a shift in trends. With the upcoming U.S. election results and improvements in Solana’s on-chain data, there’s a strong possibility that SOL coin will surge beyond $200 by November.

Can Solana Price Hit $200 by November? Key Indicators to Watch

Over the past two months, the price of Solana has made a strong comeback from $120 to $183, representing a 52.8% surge. A closer look at the daily charts suggests this growth as investors try to establish a 7-month period of consolidation using the bull-pennant pattern.

This pattern is identified by a tall line standing for the major trend, and two slanted lines indicating a brief counter-trend movement. Usually, there’s a period of consolidation where bulls regroup to restore their spent energy, then make a powerful breakout in a clear direction.

Despite undergoing a pre-election pullback in the crypto market, Solana’s (SOL) price dropped to around $166 and its market cap reached approximately $78.38 Billion. This recent downtrend might find support at the resistance level of $160, which was previously broken, and is also close to the 50-day Exponential Moving Average (EMA).

Should the underlying support remain strong, there’s a possibility that buyers might again test the resistance level at around $180, suggesting an ongoing upward trend. If a breakout happens during the initial part of November, the value of Solana could potentially surge beyond $200 before the month is over.

SOL Network Sees Robust Growth with TVL and New User Surge

As shown by DefiLlama’s data, the Total Value Locked (TVL) of SOL has seen a significant rebound from $4.77 million to $7.24 million over a six-week period – a 54% surge. This growth in TVL indicates that an increasing amount of capital is being invested or used within Solana’s decentralized applications, which points towards a strong network performance and the possibility of further price rises.

Moreover, the count of new Solana addresses experienced a substantial increase from 3 million to 5.9 million in October, representing a massive 96% spike. This considerable jump in new addresses indicates that an increasing number of individuals are delving into and engaging with Solana’s decentralized applications and offerings.

This development reinforces the storyline of an ever-growing system, thereby increasing the need for its own cryptocurrency as well.

However, this metric shows a short cool-off as Solana price reverts lower to regain momentum.

Expressing it differently: If the price of SOL drops below $160, it might strengthen the downward pressure and extend the present period of sideways movement.

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2024-11-01 22:31