The dawn of 2025 brought excitement and popularity to the Solana network and the token itself. From the launch of the TRUMP and MELANIA memecoins to the launch of the LIBRA coins, which all ended in no time, the name Solana was soaring high in the world of crypto. Thanks to the Pump.fun crypto launch platform that made launching a memecoin easy, without code knowledge. In fact, Pump.fun has been the main driver that has kept the Solana network active.
A recent on-chain metric discovered that the activity of the Solana network dropped significantly when the launch of memecoins through Pump.fun decreased. According to Blockworks, Pump.fun has raised more than 700M in cumulative revenue. With increased activity on Pump.fun, Solana prices also fluctuated widely. In this prediction, we will delve into the fundamental and technical analysis of Solana.
On Solana’s daily chart, there is a bull flag forming. SOL has just rebounded off the lower trendline of the bull flag, and it seems to be heading towards the upper trendline. The RSI indicator reads a value of 43, which is neither overbought nor oversold.
SOL/USDT 1-Day Chart (Source: Tradingview)
However, Solana has touched the lower Bollinger band, and when the token touches the lower band, it is oversold, and the market should eventually correct the prices, and Solana should appreciate. During the appreciation, SOL may head towards the upper trendline of the bull flag and might break out. Given that SOL breaks out from the bull flag conventionally, it should increase by the height of the flag pole, as shown on the chart. As such, there is a high chance that Solana could reach $190 in the short term.
The above chart shows that the number of SOL transactions have increased with the price of Solana appreciating. The SOL transactions were at its highest when the price of SOL was closing in on the $300 mark. In the current context, the SOL transactions are increasing, this shows that the community is interested in SOL.
The total value locked in the Solana platform is increasing. This shows that the users are trusting the protocol and puting their money in staking, lending and providing liquidity. In addition, the bridge total value (orange curve) is also increasing. A bridge protocol locks tokens on chain and issues wrapped tokens on another chain. When this locked value is high it means that people are trusting the bridge and it reflects the sturdiness of security of the chain.
SOL/USDT 1-Day Chart (Source: Tradingview)
Similar to the daily chart, Solana is forming a bullish flag in the weekly chart also. After touching the upper trendline, SOL is retracing back towards the lower trendline of the bull flag. However, there is high chance that the token could stumble at the support near $125, before breaking out of the flag. When SOL breaks out of the flag it may reach above $250.
