Solana Looks Set for 30% Swing Over the Weekend Following On-Chain Activity from PumpFun ICO
With market sentiment poised bullish, Solana is set for another price surge this weekend, especially with the token sale from PumpFun meme coin launchpad in a couple of days. The PumpFun meme coin launchpad is looking to announce a \$4 billion ICO on July 12 leading to yet another frenzy of increased investor activity.
SOL is currently priced at \$163, showing a 3% pump over the last 24 hours. There is currently a key resistance around \$165 which will be identified in the coming hours. Crossing this decisively could signify a bullish breakout meaning a \$216 target which would mark almost a 30% surge bringing us to the February 2025 price level which has not been reached in a long time.
Alongside this, there is supporting reasoning from a technical pattern. The formation of a rounded bottom shows Solana is attempting to move away from a prolonged downtrend with a chain of bullish news around it. Historically, rounds like this tend to stabilize and make strong upward moves, especially alongside increased trading volume and higher investor interest
Also supporting the bullish case is the 200-day Simple Moving Average (SMA) which is currently at $164. This level has been a significant point in the past. Once breached, Solana has historically witnessed extended rallies. A successful break above this SMA would provide strong confirmation to the claim of a 30% price surge.
On-chain metrics provide even further support as well. Active addresses on the Solana blockchain, for instance, have increased to an all time high of 17.1 million, marking an increase of over 400% within a single day. This increase in network activity points to higher levels of user engagement on the network and rising demand for SOL, likely driven by the anticipation surrounding the PumpFun token sale.
An explosive increase in the number of active addresses tends to accompany valuation growth. The expected ICO event is another factor traders can take advantage of, driving demand for the token by accruing SOL prior to the launch in hopes of increased value following the event.
Thus, it seems most likely that Solana is preparing for a significant rally. The combination of positive user trends, increasing activity, and an upcoming ICO might result in a 30% increase pushing Sol to approximately $216. With investor interest skyrocketing and Solana prepping for some momentum, the eyes are turned on them this weekend as they approach what could be an explosive shift.
