Solana's price action is capturing market participants' attention. This article examines key aspects: the 'double bottom' pattern, network fee growth, and user migration from Ethereum.
Solana Price Action
In December, Solana reached its first low point, repeating it in January, forming a 'double bottom' pattern. This pattern typically signals a trend reversal. After breaking the neckline level, Solana confirmed it as a new support and continued its rise. If Solana stays above this level, it could see a rise to $270. Otherwise, the price may retrace to $190, indicating a false breakout.
Solana's Fees Hitting All-Time Highs
Solana's network fees surpassed $1 billion. In July 2024, fees were about $800 million, reaching $1.02 billion by January 2025. This growth indicates high platform activity. Network revenue also increased from $400 million in July 2024 to $510.96 million in January 2025. If this trend continues, further increases in utilization and financial metrics are anticipated.
Why Traders are Bridging Ethereum to Solana?
Over the past month, more than $1 billion has been moved from Ethereum to Solana. Users seek alternatives due to network congestion and high fees in Ethereum. Solana offers faster transaction speeds and lower fees, making it an attractive platform. Analysts believe this trend may persist, compelling Ethereum to accelerate its technological upgrades.
Solana continues to strengthen its market position through positive price patterns and rising financial metrics. Competition with Ethereum is driving innovation and could lead to further development of both ecosystems.
