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Highlights
- Solana price could benefit from the soaring volume in its DEX protocols.
- Higher DEX volume leads to more revenue for the Solana network.
- There are rising odds that the SEC will approve a spot SOL ETF.
Solana price has remained on edge this month, tracking the performance of other Bitcoin and other altcoins. It has pared back some of the losses made on Monday as investors watch the ongoing trends in the DEX industry. So, will the SOL price explode higher to $300 as its DEX volume rise?
Solana Price Could Benefit From Rising DEX Volume
One catalyst for the SOL price is the ongoing performance of its decentralized exchange networks, which have continued to gain share. Data aggregated by DeFi Llama reveals that Solana has become the most active blockchain for DEX networks.
Solana protocols handled $27 billion in the last seven days beating Ethereum, which processed $16 billion in the same period. Popular Solana DEX networks like Raydium, Lifinity, Orca, and Stabble are driving this growth.
Solana’s path to dominate the DEX industry is mostly because of meme coins like Pudgy Penguins, Bonk, dogwifhat, and Fartcoin. These coins have all accumulated a market cap of over $16 billion and their 24-hour volume rose to over $3 billion.
The rising DEX volume in Solana is a good thing because it leads to higher fees in the network. Some of this fees is then passed to SOL holders in terms of staking rewards.
The other potential catalyst for Solana price is rising odds that the SEC will give the go-ahead for a spot SOL ETF. Those odds have jumped to 74%, higher than this month’s low of 59%. In a note this week, JPMorgan predicted that Solana ETFs may gain between $3 billion and $6 billion in inflows if approved.
A Solana ETF approval would be a big deal. For one, it would allow American institutional investors to allocate cash to one of the most popular cryptocurrency projects in the industry.
SOL Price Technicals Are Sending Mixed Forecasts
Solana price peaked at $264.75 on November 2023 as most coins were in a strong uptrend. It has now dropped and moved into a local bear market as sentiment in the crypto industry continued.
On the positive side, SOL has retested the important support level at $188.15. This was a key price since it was its highest swing in May and July last year. That is a sign that it has formed a break and retest chart pattern.
The value of SOL has also formed a double-bottom at $175. It also formed a falling wedge pattern comprising two falling and converging trendlines. Therefore, the coin will likely have a strong breakout, and possibly retest the 2024 high of $265. A break above that level will signal more gains to $300.
On the other side of the SOL price forecast, it has moved below the 50-weighted moving average. That could be a sign that the coin will have a bearish breakdown, potentially to $150.
Frequently Asked Questions (FAQs)
1. Can the Solana price rebound to $300?
2. Why is the Solana DEX volume rising?
3. Will the SEC approve spot Solana ETF?
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