Solana (SOL) trades in the red today, May 13, but strong fundamentals, including a surge in weekly decentralized application (dApp) revenue, suggest that the Solana price may witness a bull run to $300. On-chain data suggests that the Solana blockchain has outperformed all other layer one and layer two networks, which is a bullish indicator for the token.
SOL briefly hit the $180 barrier on Monday before facing strong rejection as traders booked profits, causing a reversal to trade at $171 at press time.
Solana Price Targets $300
Solana price is teasing a breakout from the resistance line of an ascending parallel channel, but it has been rejected at this level several times. However, as it is successfully defending the midline support, a breakout from the upper resistance is likely to happen, and it may fuel more gains.
Besides this bullish channel, a golden cross is looming as the 20-day EMA tips north and nears a convergence with the 200-day EMA. If the trend depicted by the two trendlines continues, and a crossover occurs, it may spark the next bullish leg for SOL price past the $177 resistance level to the previous all-time high of $296, towards $300.
SOL/USDT: 1-day Chart
The RSI indicator also confirms that the momentum is bullish and Solana may cross $200 soon, given the reading of 69, which confirms that buying pressure is still strong.
Besides the bullish technical outlook, network fundamentals also confirm that bulls will likely continue driving the upward momentum for the Solana price.
Solana Outperforms All Layer 1 and Layer 2 Networks
The Solana blockchain outperformed all the other layer one and layer two networks in terms of revenue earned by decentralized applications (dApps) last week. Data from DeFiLlama shows that during the week, Solana revenues surpassed $50 million while the network’s dominance reached 51.6%, which was over three times higher than Ethereum’s 14.23%.
dAPP Activity
Solana’s revenue growth is a bullish indicator for the SOL price as it could bolster investor confidence and help push the altcoin higher. This surging metric confirms that, despite Solana price retreating after facing rejection at the $180 resistance level, the altcoin is targeting more gains.
Data from DappRadar also shows that in the last seven days, dApp volumes on the Solana network rose by 50% to $1.61 billion, while transactions during the week came in at $138 million. The surge may be linked to a SOL meme coin frenzy that has pushed their market cap above $14 million.
Rising Open Interest Also Supports a Bullish Case
The Solana open interest has been on a steady rise, and despite the recent decline in price, the metric has continued with an upward trend and recently reached $6.92 billion, marking the highest level since late January.
Solana Open Interest
The rising OI shows a high level of conviction among traders that the price of SOL will continue to rise. This outlines a positive Solana price forecast, as bulls target the next key levels above $200 and a fresh all-time high of $300.
Therefore, as the Solana blockchain continues to grow and outperform the other layer one and layer two networks, SOL price may continue with an upward trend and possibly target an all-time high level above $300.
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muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
