Solana Update: Will Solana’s Price Surge Past $200 After TRON’s Vampire Attack
In recent weeks, there has been a decrease in the price of Solana (SOL) as trading volume shifted towards Tron following the launch of the SunPump platform. This event, commonly referred to as a ‘vampire attack’ within the cryptocurrency space, involves one blockchain or decentralized protocol attempting to attract users and liquidity from another chain.
Justin Sun, the founder of Tron, expressed his intentions to further boost the network’s usage by leveraging the influence of the meme coin industry. This strategic move resulted in significant shifts in trading volume, underscoring the divergent paths of the two networks.
Solana Price Decline
After the launch of SunPump, there was a substantial surge in volume and users on the Tron-based platform, leading to an increase in the SUN token and Tron’s trading volume. Conversely, Solana witnessed a decrease in price, users, volume, and fees. Data from Dune Analytics revealed that Solana’s total fees and Jito tips declined by more than 50% following the launch of SunPump.
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It was also noted that a considerable portion of the fees generated on Solana were priority fees or MEV tips. Consequently, if the user base shifts from Solana to Tron, the network’s revenue from these fees is expected to decrease significantly. Prior to the launch of SunPump, Solana generated an average of $1 million per day in revenue from fees. However, since the launch, Solana’s daily revenue struggled to surpass $500,000.
Solana’s price showed signs of pressure at the start of September, hovering around $134 and experiencing a roughly 25% decline from August. Despite this, technical analysis revealed that the SOL price remained within a 187-day consolidation zone. The asset tested the lower boundary five times during that period, demonstrating its resilience.
Price Action and Market Trend
On the other hand, the primary resistance around $200 appeared relatively weak as it was tested only once. However, stronger resistance exists just below it, around $180, with another weaker resistance at $160.
A future price prediction for Solana suggests that surpassing the immediate resistance at $160 could drive the price to $180 and potentially to $200, representing over 50% gains from the current price. Conversely, a breach of the solid support at $120 could lead to a drop in SOL price to $80.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
