Solana (SOL) Poised for $200 In October: 3 Factors To Watch

• Solana Crypto has a market cap of $71.08 Billion. At press time, it was ranked as the 5th biggest token worldwide.
• Solana’s price was on the brink of a breakout and poised for a surge.

Layer 1 blockchain Solana (SOL) has been trading in an uptrend and continued to witness outperformance. The sustained price rise is due to solid fundamentals and persistent growth in the Solana ecosystem.

With a market cap of $71.08 Billion, SOL stood as the fifth largest crypto. At press time, the Solana price was trading at $151.44 with an intraday drop of over 1.20%.

Solana coin sustained above the $150 mark. It replicated buyer strength over the last few sessions. Per the price action, Solana crypto could reach the $200 mark this “uptober.”

Solana crypto rested above the key EMAs, and speculators anticipated a swing toward the $200 mark. It was edging closer to the horizontal neckline of $160 and could see a significant breakout next.

Let’s examine the three factors influencing why Solana (SOL) could reach the $200 mark this month.

Solana’s DeFi Surge: A Game Changer for the Ecosystem

The Solana ecosystem expansion is comprehensive. Nonetheless, one of the biggest catalysts of this growth is its Decentralized Finance or DeFi. For the past few months, the SOL ecosystem has witnessed massive growth.

Data from DeFiLlama showed that SOL’s TVL noted a massive surge, currently at 6.053 Billion. At the same time, the fully diluted valuation (FDV) was noted at $89.503 Billion.

Since the beginning of this year, the altcoin’s TVL has been on the rise. This represented investor confidence in the network. Typically, a rising TVL conveyed growth in the ecosystem. That might fuel the altcoin price to $200 in the following sessions.

More specifically, if this Solana DeFi lockup remains extended, it will bring scarcity into the broader ecosystem. It may fuel positive sentiment and help Solana coin reach the $200 mark soon.

Memecoin Frenzy: What’s Fueling the Explosion?

Over the last few years, memecoins have always influenced the utilization of layer 1 and layer 2 blockchains. Although Ethereum introduced these trends, Binance Smart Chain took its place, and now Solana (SOL) is becoming popular.

Solana-based memecoins recently noted a massive outperformance, namely, WIF, BONK, POPCAT, and many more.

For instance, it has also fueled more demand for memecoins in the network again within the community. This trend could positively impact the Solana price in the following sessions if it persists.

Exploring the Uptober Effect: A Bullish Month for Crypto?

Data suggested that October is bullish for crypto assets. According to Cryptorank, Solana (SOL) saw an average increase of over 15% in October. Data from 2020 showed that two positive and two negative monthly price trends were recorded.

However, the 43% rise on Oct 21 and the 80.1% rise on Oct 23 outweigh the negative close of 3.6% on Oct 20 and 0.6% on Oct 22. If the “uptober’ trend repeats itself, Solana could potentially cross the $200 mark and see massive outperformance by the end of 2024.

Currently, the Solana price faces a horizontal neckline hurdle of $160. This could be seen in the subsequent sessions if it crosses a significant upsurge toward $180, followed by $200.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.