Solana Active Users Hits All-time High —Will SOL Price Reach $120? 

Key Insights:

• Solana (SOL) price stumbled below the $100 milestone at the weekend, down 8% from its 30-day peak of $107 recorded on Jan 31. 
• Solana recorded 875,940 active users on Jan 31, the highest recorded on the layer-1 network since inception in 2020
• The Parabolic SAR technical indicator suggests that the bulls are still largely in control of the SOL market. 

Solana (SOL) price surged to a 30-day peak of $107 on Jan. 30 as rising DeFi volumes on the layer-1 network and positive speculations surrounding the upcoming Jupiter (JUP) token airdrop buoyed investor confidence. 

Is SOL price on the verge of a breakout toward $120?

Solana Network Usage Hits All-time High

Solana is trading at $96 at press time on Feb. 6, down 8% from the recent peak of $107 recorded just 6 days prior. But notably, Solana has recorded an unusual spike in network usage in the past week. 

According to Token Terminal data, Solana recorded 875,940 active users on Jan 31, the highest recorded on the layer-1 network since inception in 2020. 

Solana has since maintained a 5-day average of 578,000 active users, more than 26% higher than the 2023 peak of 458,210 users. 

Indicating that the Jan 31 surge was not an outlier event, rather a signal of organic growth and increased adoption of projects built on the Solana Layer-1 network.

In summary, in addition to the curtailed selling pressure, critical fundamental factors, such as rising demand from increased DeFi activity, and the positive speculation surrounding the Jupiter project, have further beefed up support for SOL price in the past week. 

Solana Price Forecast: $120 Retest in Focus

Currently, Solana appears to be in a prime position for another leg-up toward the $120 area in the days ahead. 

Furthermore, current trends observed on the Parabolic SAR technical indicator also supports this bullish SOL price forecast. 

When the Parabolic SAR points below an asset’s current price, it indicates an imminent reversal of the ongoing downtrend.

In this case, the Parabolic SAR (blue dots) currently point to $87, while the current Solana price is $0.96, confirming the positive forecast. 

Strategic traders could interpret this as a signal to hold or buy more, as it implies that the price trend might be on the verge of a bullish reversal. 

If this scenario plays out as predicted, the bears can mount significant support at the $100 psychological support to avoid widespread margin call triggers. 

Conversely, the bears could negate this bullish forecast by forcing a correction below the $85 area. However, as outlined by the SAR dots above, the support buy-wall at $87 could form a daunting challenge.