Solana (SOL) continues to struggle this week as buyers remain on the sidelines. Bitcoin’s (BTC) sideways movement also does not help, suggesting potential consolidation in the short-term. Any attempts for SOL to rebound have been met with substantial resistance as investors remain uncertain about BTC’s next move. However, Solana price could still reach $520, a new all-time high due to growing app revenue.
Solana Price Loses $200 Support as App Revenue Grows
Solana price peaked at $295 in January and has continued to lose momentum following Bitcoin’s footsteps. This same bearish trend can be seen among altcoins, which have dropped by double digits this year. Notably, Solana has now lost the important psychological support level at $200, but the long-term outlook remains bullish, as attested by the app revenue, which grew by 213% quarter-over-quarter.
A report by Messari shows that Solana’s ecosystem was doing well as key apps in its ecosystem boom. Solana’s total app revenue rose by 213% QoQ to $840 million in the fourth quarter.
Pump.fun, the popular meme coin generator, made $235 million, while Photon, Raydium, BullX, and Trojan made over $140m, $74m, $73m, and $63 million, respectively.
Further data by TokenTerminal shows that Solana’s network revenue has flipped Ethereum this year. It has made over $278 million YTD compared to Ethereum’s $178 million. This revenue growth happened because of the recent surge in meme coin trading volume in the ecosystem. Some of the most notable Solana meme coins were Official Trump and Melania.
With such high activity and popularity of Solana, it is likely that SOL embark on massive rally to the upside. However, it first needs to overcome the $200 psychological level.
Can SOL Price Hit $520
Analysts are still giving bullish Solana price forecasts, with many expecting it to rebound soon. In an X post, VanEck [describe what vacneck is to add weight to this prediction] predicted,
“Our Solana Price Target by the End of 2025 is $520″
The analysts cited the network’s market share in the smart contract platform (SCP) market. The SCP figure is based on the M2 money supply figure, which is expected to get to $22.3 trillion.
“We project M2 to reach $22.3T by the end of 2025, maintaining its 3.2% annualized growth rate since its last trough in October 2023. Using regression analysis, we estimate total SCP market capitalization will grow 43% to $1.1T by year-end 2025 (vs. $770B today), surpassing its 2021 peak of $989B.”
Their estimate is that since Solana holds about 15% of the SCP market cap, there is a chance that its market cap will grow to $520 billion from the current $96 billion. Assuming that Solana will have 486 million tokens, VanEck estimates that the coin will trade at $520.
Solana Price Analysis: Key Solana Levels to Watch
Solana’s long-term outlook is bullish, but charts point to some volatility in the near term. The daily chart below shows that the coin has formed a double-top pattern at $265 and a neckline at $171. A double-top is a highly bearish chart pattern, especially when an asset moves below the neckline.
Solana price has also lost the 50-day and 100-day exponential moving averages, a sign that bears are in control for now. As such, it is likely to continue its downtrend in the next few days. This view will be confirmed if it loses the ascending trendline and the double top’s neckline at $171.
The first key value of SOL level to watch is the ascending trendline at $185, followed by the neckline at $171. Losing those levels risks it falling to $110, the lowest level in August last year.
On the other hand, a move above the 50-day moving average at $220 will point to more gains, potentially to $265.
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