Solana price has made headlines with its impressive surge, surpassing Binance Coin (BNB) to become the fourth-largest cryptocurrency by market capitalization. How did Solana grow so fast to be able to take over BNB, here are the details:
How Did Solana Grow So Fast To Become The Fourth Largest Crypto?
1- Solana Price Surge Fuels Market Cap Growth
Solana’s price has experienced a significant rise, recently surpassing $185 and closing in on $190. This surge allowed SOL to surpass BNB, with Solana's market cap reaching $86.024 billion, edging out BNB's $84.623 billion. The catalyst behind this rise includes the approval and launch of spot Ethereum ETFs, which shifted investor focus to Solana as a potential ETF candidate.
2- Solana's Institutional Interest
Solana has seen a notable increase in institutional interest. for the week ending July 20, Solana had the highest inflows of any altcoin after Ethereum, with $9.6 million in inflows compared to Litecoin's $2.2 million. This significant interest from institutions suggests that Solana is becoming a preferred investment choice, driving its price higher and increasing its potential for further gains.
3- Solana's Increasing User Activity
Since the beginning of July, Solana has seen a significant surge in daily active addresses, reaching over 2 million. This 38% increase from the 1.45 million addresses recorded on July 10 demonstrates growing interest and confidence in Solana within the crypto community, further supporting its bullish outlook.
Solana Price Prediction Based on Technical Analysis
Solana's current price of $185 is forming a double bottom pattern, a bullish indicator often referred to as the "W" pattern. This pattern suggests a potential 31% rally, targeting $245 and bringing SOL closer to its all-time high of $260. However, a failed breakout could see Solana's price drop to $175, invalidating the bullish outlook.
Crypto analysts highlighted a bullish pennant formation for Solana on the weekly timeframe. This pattern, emerging after an uptrend, signals a continuation of the upward trend following a consolidation phase. Solana's price, which peaked above $200 in April before entering consolidation, has now broken out of this pennant, indicating renewed bullish momentum.
Solana is currently trading at $184, marking a 7% increase over the past week. Analysts predict a long-term substantial rally for Solana, with a price target as high as $1,000. Achieving this ambitious target would require SOL to break through various resistance levels and reach new all-time highs.
Solana's recent achievements, including surpassing BNB and breaking out of bullish patterns, highlight its strong potential for future growth. With increasing institutional interest and rising user activity, Solana is well-positioned for continued success in the cryptocurrency market.
