In recent weeks, Solana (SOL) has been thrust into the spotlight within the cryptocurrency industry due to persistent network congestion, which threatened its standing as a potential competitor to established entities like Ethereum (ETH).
However, recent efforts to address these issues seem to have borne fruit. According to an update shared by SolanaFloor on April 24, the congestion problems have been successfully resolved, and transactions are now confirmed in under two seconds.
The journey to resolving these issues has not been without its challenges. Particularly, initial attempts, including solutions proposed by developers like Anza and network upgrades, proved insufficient, leading to prolonged congestion.
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The increased network activity, driven mainly by interest from meme coins launched on the platform, significantly contributed to the saturation. Notably, throughout this period, SOL traded with a bullish bias that aligned with the overall market sentiment.Â
SOL price prediction
With congestion issues resolved at the moment, attention has now shifted to how the resolution will impact Solana’s valuation. Currently, Solana is trading above the $150 support zone, with the focus now on the bulls sustaining strong buying pressure to push the price above the $160 resistance zone.Â
Success in doing so could propel Solana towards its $200 target. However, failure to achieve this and a large-scale sell-off SOL could trigger a correction down to $150.
To gain insights into Solana’s subsequent price trajectory, Finbold consulted CoinCodex’s artificial intelligence (AI) tool, which utilizes machine learning to offer price predictions. The tool foresees a continuation of bullish sentiment surrounding SOL.
For instance, in the next month, the tool predicts that SOL will likely trade at $180.39, representing a growth of 17% from the current valuation. Additionally, the tool anticipates SOL reaching the $200 level in six months, projecting it to trade at $221 by October.
By press time, Solana was trading at $152.27 with daily losses of over 3%. On the weekly chart, Solana is up 17%.
Other SOL fundamentals
In addition to the impact of the congestion trajectory, SOL contends with other potential fundamentals likely to influence its valuation to $200. One such factor is the impending auction of a significant portion of FTX’s Solana holdings, which could potentially introduce downward pressure on SOL’s price.
At the same time, Brazil’s digital bank, Nubank, has expanded its crypto offerings to include Solana, enabling users to deposit and withdraw the token directly. This development signifies the growing institutional adoption of Solana, potentially bolstering bullish sentiment.
As things stand, the $200 price target for SOL is within reach, contingent upon various factors such as the network’s ability to maintain efficiency and scalability, market sentiment, and broader macroeconomic trends. Additionally, it will depend on the network’s capacity to sustain momentum regarding meme coins on the platform.Â
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
