- Solana’s daily active addresses surged over 400%, reaching a record 17.1 million ahead of the PumpFun ICO.
- A bullish rounding bottom formation indicates potential for a 30% SOL price rally, aiming for the $216 mark.
- SOL must sustain levels above the 200-day SMA to confirm a breakout, which could trigger continued upward momentum.
The Solana blockchain has seen a significant increase in user activity ahead of the highly anticipated token sale on PumpFun. On July 12, PumpFun will conduct a $4 billion ICO that is expected to increase demand for SOL. In response, daily active addresses on the Solana network have climbed over 400% to 17.1 million, marking an all-time high.
By Thursday, SOL had risen 6% in the last 24 hours to trade for $167. The movements in the prices are signs of increased assurance between investors. Technical analysis indicates that SOL has been testing the resistance point at 165 dollars thrice over the past few weeks. A valid breakout above this figure might mean an even more tangible upward trend in the short term.
Rounding Bottom Formation Signals Potential Price Upswing
Chart patterns indicate the formation of a rounding bottom, which typically reflects a reversal from a previous downtrend. If this setup continues to develop, SOL could experience a price surge. Historically, similar patterns have preceded extended rallies. Market data suggests a 30% upside potential, possibly lifting the price to $216, its highest point since February 2025.
The 200-day Simple Moving Average (SMA), currently near $164, acts as a significant resistance level. The fact that SOL can close above this level could verify a long-term bull trend. Past breakouts of over 200-day SMA have many times resulted in long-term accumulation in prices, and the ongoing trend may continue provided momentum is maintained.
Community Anticipates Strong Weekend Performance
Market santiment has turned optimistic as the broader cryptocurrency market shows signs of recovery. The influx of new wallet addresses and the expected surge in trading volume due to the PumpFun token sale may lead to sharp weekend volatility for SOL. Investors are watching closely for signs of a sustained breakout as trading volumes increase.