DEX

A surge in Solana network activity, memecoin prices and optimistic derivatives markets could be a sign that SOL is aiming for $180.

Solana's native token SOL (SOL) rallied 13% between July 14 and July 16, breaking above the $160 resistance level for the first time in five weeks. However, SOL's price remains 24% lower from its $209 peak in March, leaving little room for celebration among bulls. Traders now question the sustainability of the uptrend and the odds of retesting the $180 level in the near term.

The recent excitement around SOL can be partially attributed to the final phase of Ether exchange-traded funds (ETFs) approval. According to Bloomberg analyst Eric Balchunas, the US Securities and Exchange Commission (SEC) has reportedly delivered final instructions to asset managers as it prepares to launch on July 23. VanEck and 21Shares filed for a similar Solana ETF application on July 8, although a final decision from the SEC is expected by March 2025.

A significant part of Solana's ecosystem consists of memecoins, thanks to the network's low fees for launching and trading. This has led to the success of memecoins like BONK and DogwifHat (WIF), which achieved peak market capitalizations of $2.8 billion and $4.8 billion, respectively. More importantly, Solana has been able to build an active and engaged community, which is not easily replicable.

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