Solana price exceeds $100: How long will the rise last?

In recent days, attention in the cryptocurrency market has been focused on the Solana coin (SOL), which has witnessed a sharp and continuous noticeable rise in its price.
It recorded the best performance among the 20 largest cryptocurrencies in the market, to the point that it surpassed both BNB and Ripple XRP to become the fourth largest cryptocurrency in terms of market capitalization.

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Technically, the price of Solana (SOL) was able to breach the $100 level, which is a very important psychological barrier.
These very positive developments came more than a year after the collapse of the FTX exchange, which contributed to its price falling below $10.
Due to the latter’s large investments in the Solana Network project, which was called the “Ethereum killer.”

The real factors for the rise in Solana’s price

The current hype and momentum around Solana did not come from anywhere.
But it was preceded by developments in the general market, with growing hopes for the approval of spot Bitcoin ETFs.
But also, and most importantly, the significant developments and improvements in the performance of the Solana network have made specialists and investors alike believe in its ability to outperform the Ethereum network solutions as an environment and platform for developing decentralized applications and Web 3.0 projects.

In the past months, many companies have adopted the solutions provided by the Solana network.
Instead of choosing competing Ethereum network solutions that offer many similar solutions.

The most recent was the American company Visa, which specializes in the field of payments. announced that it is expanding its settlement capabilities using Circle’s digital stablecoin, USDC.
To achieve this, the payments giant has integrated the Solana network to make USDC payments easier and faster.

These points in particular are important for those who want to invest in the long term. Investors, especially financial institutions, have been rushing to buy Solana for several months.

And in the weekly report of the asset management company CoinShares.
Which was issued at the beginning of October indicated a high demand from financial institutional investors for Solana-linked investment products and funds.
It recorded positive net flows over the past months. Even in times of market decline.

How long can this strong rise continue?

Well, in the short term, I don’t have the answer, and no one can claim otherwise.
Because the main drivers of the current market rally are primarily psychological.
There is a lot of noise on social media, especially regarding the issue of Solana Smartphones, which are sold for thousands of dollars, and also the rush for the BONK meme currency built on the Solana network.

We can see this not only in the price movements but also in the volume of activity in the Solana blockchain network.

Data from Solana shows that the Solana network has achieved record numbers in the number of new and active addresses per month, despite having a week left in the month.

The number of active addresses in the Solana network was about 50% above November numbers, reaching more than 15.6 million, surpassing its previous record of 15.2 million in January this year.

The number of new addresses also hit a record 6.8 million in December so far, compared to the previous record of 6.6 million in May 2023.

The only metric that has yet to hit a record is non-voice transactions, which are still below their November numbers.
In the Solana network, the same transactions that send funds or activate smart contracts are used to validate the network, making non-voice transactions an important measure of users’ actual activity.

In the cryptocurrency market, though, the strength of the hype can be calculated, measured, and analyzed.
However, it is very difficult to use this information to predict when the hype will lose momentum.

But what is certain is that it will fade away and we will return to the normal trading atmosphere.

The best strategy now is to wait for Solana’s price to decline and search for the best technical levels to enter.
Be careful not to use leverage to reduce risks. Because the correction movement can be as sharp as the bullish wave.

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