Q4 Solana Prediction: Is SOL Ready for $200?
DApp activity on Solana has significantly decreased over the past 30 days.
Solana’s consolidation after the recent break from $150 shows signs of fatigue.
On-chain data presents mixed signals regarding whether the price of SOL can rise to $200.
At the time of publication, Solana [SOL] was trading at $144. Despite a recent surge from a multi-month support level, SOL has decreased by about 6% over the past 30 days.
Last week, Solana experienced a healthy recovery, rising from $127 to $151, primarily due to support from the broader cryptocurrency market, as Bitcoin [BTC] and most altcoins reported gains.
As Solana’s rally shows signs of exhaustion, do on-chain data support a long-term bullish outlook that could push prices to $200?
Active Addresses on Solana
Data from Artemis shows that while monthly active addresses on Solana recently hit a record high, daily active addresses indicate that short-term engagement has slowed down.
Daily active addresses on Solana reached a one-year high of 5.5 million on September 19, but this metric has since decreased to 3.5 million addresses.
Source: Artemis
The decline in daily active addresses on Solana indicates a decreasing usage of the network. For the price of SOL to reach $200, network activity must increase.
DApp Volume Remains Low
Data from DappRadar shows that over the past 30 days, activity in decentralized applications (DApps) on Solana has significantly decreased.
DApp volume on the blockchain has dropped to $121 million, a stark contrast to over $400 million recorded in late August.
A similar decline is also observed in the number of transactions and unique active wallets (UAW).
Source: DappRadar
For SOL to extend its gains, there needs to be greater demand for the token as users interact with the DApps built on the blockchain.
DeFi TVL Surpasses $5 Billion
The decentralized finance (DeFi) total value locked (TVL) on the Solana blockchain has surpassed $5 billion for the first time this month.
According to DeFiLlama, Solana has added over $500 million to its TVL in just two weeks.
The DeFi boom on the Solana blockchain could positively impact the price, as individuals interacting with the protocols built on the network demand SOL for transaction settlements.
One of the protocols driving the DeFi boom on the blockchain is Jupiter, which has recently reached its all-time high TVL.
As Solana’s network metrics show mixed signals, the long/short ratio indicates that short positions slightly outnumber long positions.
This suggests that traders are not strongly convinced of Solana’s ability to increase in value to $200 in the short term.
Source: Coinglass
