The competition between Solana and Ethereum is heating up, with the total amount that has been bridged to SOL reaching $72M per deBridge data. This value transfer suggests that users are flocking to SOL to tap low gas fees and fast transaction speeds. If this continues, can Solana price break out from its current support zone and possibly reach $300?
Competition Between Solana and Ethereum Heats Up
Data from deBridge shows that blockchain users are abandoning Ethereum for Solana, which might bode well for price. The co-founder of deBridge Finance, deAlex, observed that the SOL network is leading with the highest amount of bridged assets.
Bridged Blockchain Assets
TokenTerminal further highlights Solana’s dominance among other layer 1 blockchains. This is after SOL weekly active addresses rose to 17M, which is nearly ten times higher than the 1.8M addresses on Ethereum.
The rising address count coincides with rising deposits on the network. DeFiLlama shows that SOL’s TVL is at 54.87M SOL, which is the highest level since July 2022.
Solana DeFi TVL
The network activity could continue to rise following PumpSwap’s launch by the PumpFun meme coin launchpad. This Solana DEX could spark a return of a meme coin frenzy on Solana, driving more value.
As on-chain data turns bullish, Solana price prediction suggests it is likely to bounce from its current support zone. If this happens, can Solana price reach $300?
Solana Price Analysis as Bullish Momentum Builds
A bullish momentum is building around SOL. The 4-hour price chart shows that Solana has been making higher lows, suggesting that an upward momentum is underway. This momentum will only hold if SOL can continue to fluctuate above the $117 support.
The RSI line has also been climbing albeit being stuck below 50. This indicator stands at 48, showing that the momentum is neutral. If it crosses above 50, as the MACD rises, SOL will sustain the upward momentum.
The continuation of bullish trends will result in SOL targeting $154. Flipping this Fibonacci level will unlock the possibility of a bullish leg for Solana price towards $300.
SOL/USD: 4-Hour Chart
SOL Derivatives Market Outlook
The Solana derivatives market shows a steep decline in activity. Open interest and derivative trading volumes have dropped by 3% and 38%, respectively per Coinglass. Long traders also continue to suffer the biggest blow with $6.21M longs liquidated in the last 24 hours.
The surging long liquidations have forced the SOL long/short ratio to fall to 0.95, which shows that short traders are now more than long traders in the market. If long traders shy away from opening new positions, it will cause a bearish market outlook that will trigger a Solana price decline.
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