Solana network activity surge and ‘megaphone’ chart pattern set $210 SOL price target

Key Takeaways:

• Solana formed a megaphone chart pattern with a potential $210 price target.

• Solana’s ecosystem growth highlights renewed investor interest with a $4 billion realized cap increase and 731 million transactions.

Solana (SOL) price tested its key resistance at $180 earlier this week, but the altcoin failed to establish a position above the level. Over the past few days, SOL has consolidated above the $170 mark, but prices have dropped 5.65% since May 14.

Including the recent minor dip, Solana has formed a megaphone pattern on the 4-hour chart, a classic technical setup indicating increasing volatility.

The chart illustrates that the megaphone’s upper resistance trendline sits near $185, aligning with immediate resistance at $180. A confirmed breakout above this level could propel SOL toward the pattern’s first target at $210, calculated by measuring the widest part of the pattern and projecting it upward from the breakout point.

If momentum is sustained, the next target will be $210, representing a 21% rally from current prices. A break above $200 would also trigger a psychological level that could attract further buying pressure.

However, it is essential to note that a megaphone pattern can also be bearish. Failure to break $180 may lead to a pullback toward the 100-day exponential moving average (EMA) at $161 or the pattern’s lower support near $150. Volume confirmation on the breakout is a key trigger, as low volume could signal a false move, leading to an immediate reversal of the initial directional bias. 

Related: Solana network and DeFi activity suggest SOL price rally will continue

Solana is experiencing a revival in investor interest, with Glassnode reporting a 4% to 5% rise in 30-day capital inflows, matching XRP’s (XRP) growth. After months of outflows, this trend reversal signals renewed demand in the Solana ecosystem. The realized cap, reflecting a coin’s last transacted value, is up $4 billion to $78.5 billion on May 14, showing SOL’s growing momentum.

Data from a Top 7 ICO report further validates Solana’s strong performance, securing its position as the second-ranked blockchain by transactions. Over the past week, Solana processed an impressive 731 million transactions, trailing only Hyperliquid’s 1.79 billion. It significantly outperformed Base, which logged 77.1 million transactions, highlighting Solana’s existing advantage and popularity compared to other chains.

Related: Spot Bitcoin ETF inflows fall, but BTC whale activity points to bull market acceleration

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.