Solana’s Fees Surges Over 100% in a Month! Is This A Bullish Outlook for SOL Price?

Key Takeaways:

• Solana’s Soaring Fees and Network Engagement: A notable surge in protocol fees, up by 103% in a month, signals a remarkable increase in network activity akin to Ethereum’s dynamics.
• Bullish Signals for SOL’s Price Trajectory: SOL’s Price upward momentum, supported by increased daily active users and a value surge to $58.16, showcases a potential rally towards the $70 mark.
• Navigating Market Dynamics: Despite the bear market’s impact since early 2022, the SOL price’s current trajectory surpasses its performance over 18 months, reflecting resilience and a strong recovery.
• Technical Indicators and Price Predictions: SOL surpasses vital moving averages, indicating a bullish trend, while RSI readings hint at a potential retest around $62 and profitable entries in the $58-$60 range.
• Continued Growth and Market Outlook: Solana’s optimistic trajectory, buoyed by robust performance indicators, foretells continued growth and sustained bullish trends for SOL in the crypto market.

Recent activity surge on the Solana network has propelled an impressive rise in protocol fees, indicating potential bullish trends for SOL price in the coming days. Analyzing Token Terminal’s dashboard data, the last month has witnessed a staggering 103% increase in Solana’s protocol fees, reaching $131,100 on November 22 compared to $99,724 on November 14.

Source: Token Terminal / AMBCrypto

The rise in fees signifies a substantial uptick in Solana network activity, similar to Ethereum’s fee structure, where fees are determined by network congestion and historical throughput. Despite boasting lower transaction costs than Ethereum, the escalation in fees suggests a remarkable surge in network engagement.

This increased activity is evidenced by the substantial 132% surge in daily active users, aligning with the ascending fee trend. Concurrently, SOL made strides in reclaiming a value of $58.16 over the last 24 hours. Market analysts noted the significance of SOL surpassing the $57.55 mark, marking a pivotal level for the token’s trajectory.

#Solana Ecosystem Update$SOL/ $USD 2D📊

📈 – SOL reclaiming $57.55 HTF target🎯(3.618 fib) would signal upside

⚠️ – $57.55 HTF price becomes LTF resistance – could signal downside to previous MTF🎯

📉- SOL is unable to find support at MTF level $46.48

💰- $SOL 📈452.9% YTD https://t.co/4VNiMAejME pic.twitter.com/3ePsakwySV

— MS2 Capital (@ms2capital) November 22, 2023

A forecast from MS2 Capital hinted at potential outcomes for SOL, highlighting the possibility of a downturn to $46.48 due to Low-Frequency Trading (LFT). However, the prospect of High-Frequency Trading (HFT) could drive SOL’s upward momentum.

In recent developments, SOL favored HFT, characterized by a surge in the order-to-trade ratio. Chart indicators on the SOL/USD 4-hour chart demonstrated substantial buying pressure since November 22. The Relative Strength Index (RSI) stood at 54.54, suggesting a continued uptrend for SOL, contingent upon a surge in buying momentum.

The anticipation for a potential price surge leans on increasing RSI readings. A potential retest at $62 looms if the RSI trend persists. Notably, the Aroon Up and Aroon Down indicators portray an optimistic outlook, signaling the likelihood of a new uptrend and potentially profitable entries around the $58 to $60 range.

As the Solana network continues to witness a surge in buying momentum, prospects for SOL to attain the $70 milestone seem plausible.

Read More: Solana Price Prediction

Solana Price Analysis

SOL/USD | Source: TradingView

• Solana price has demonstrated remarkable performance among the top 10 cryptos by market capitalization since October 2023. From September 28 till November 16 – SOL price has surged by more than 240%, with a significant 41% rally recorded solely in November.
• Despite enduring the downturn of the bear market that was initiated in early 2022, SOL price is now signaling a robust and widespread recovery.
• Like the Bitcoin price trajectory, the current Solana price is positioned at 18-month highs, reaching approximately $58, significantly surpassing the target levels set by the Fibonacci pivot points for November.
• Solana price is currently trading at a price level that has been unheard of in this altcoin since May 2022 – roughly the month that heralded the current cycle of the crypto bear market.
• The Solana price has exceeded both its 50-day and 200-day exponential moving averages, witnessing a bullish golden crossover. This development is poised to bolster further bullish price trends moving ahead.

Additional Read: How to Claim Latest Solana Airdrops?

Conclusion

The surge in Solana’s protocol fees reflects heightened network activity, signaling potential bullish trends for SOL price. With fees surging 103% in the last month and a significant increase in daily active users, Solana showcases remarkable engagement similar to Ethereum. Recent indicators suggest SOL’s upward trajectory, aiming for $70. Despite challenges in the past, SOL’s current performance exceeds prior altcoin levels, demonstrating a bullish trend since May 2022. Exceeding crucial moving averages and showcasing a bullish crossover, SOL’s outlook remains optimistic for sustained growth toward the $70 mark.

Source: AMBCrypto