Solana SOL’s Growing User Base Fuels Price Surge: Fibonacci Analysis Predicts 33% Rise

Leading blockchain network Solana has seen increased activities after weeks of decline, with daily active addresses surging by 12% since October 5.

This surge comes after a drop in user activity impacted the network’s revenue. 

With the increasing engagement, Solana’s native token (SOL) shows signs of recovery, with a nearly 2% price increase over the past 24 hours.

Solana SOL’s Network Shows Signs of Recovery

Solana experienced a slump in user activity throughout September. Data from Artemis shows that Solana’s daily transactions and network interactions dropped significantly. This decline led to a 46% plunge in total revenue, marking its lowest point since March. 

The reduced activity directly impacted the network’s performance. However, since October 5, the tide has turned, with daily active addresses surging by 12%. Moreover, Solana recorded a 15% rise in new addresses. 

According to Hello Moon’s data, these new addresses represent users making their first transactions on Solana. This resurgence in new users indicates that Solana is attracting more participants.

Higher User Activity Boosts Solana’s Revenue and Fees

As user activity on the network grew, Solana’s total fees and revenue followed suit. Artemis data reveals that Solana’s fees and revenue have surged 8% over the past week.

This growth is driven by increased user transactions, which means more fees are paid, and more value flows into the network. This network growth strengthens Solana and raises demand for its native token, SOL. 

As demand for SOL increases, it can lead to higher prices, especially if the trend continues.

Network fees are essential for blockchains like Solana. Notably, they are vital in supporting the infrastructure and maintaining the network’s security. Therefore, the 8% increase in revenue suggests that Solana is heading in the right direction.

Analyst Predicts Major Move Ahead

Since mid-March, Solana (SOL) has traded between $210 and $110. Some investors now think this might be a bull trap instead of an accumulation. 

Many fear the coin may not see the expected breakout, with potential further declines ahead. However, some remain cautiously optimistic. Prominent analyst Mister Crypto shares a more bullish outlook in his X post.

Patience will be rewarded.

Solana $SOL pic.twitter.com/yGvXdXXgXi

— Mister Crypto (@misterrcrypto) October 9, 2024

Mister Crypto compares the current market sentiment to 2021, when Solana saw a massive rally. He points out how fear and uncertainty often precede major bullish moves. 

The analyst believes Solana’s next move could surpass its all-time high of $260. Although no price target is set, his analysis hints at another upward breakout if historical patterns repeat. 

The next few weeks will determine if Solana breaks out of its current range or continues to fall. Solana (SOL) is hovering around $142, a slight 1.99% increase. Its 24-hour trading volume is up more than 10%, sitting around $1.89 billion.

Overall, Solana’s recent surge in user activity, alongside Mister Crypto’s bullish view, suggests SOL could be ready for another significant move.