Solana (SOL) has seen a modest 5.05% rise in the past week, reflecting a positive shift after a prolonged period of market declines over the last 30 days. While these gains may seem minor, notable market analyst Ali Martinez suggests that SOL is well-positioned for further upward movement, with some potentially significant price targets on the horizon.

$225 or $264: What’s the Next Target for SOL?

In a recent update on X, Martinez shared a bullish outlook for Solana, referencing key technical levels that suggest the altcoin could continue its upward trajectory. He highlighted the Fibonacci retracement levels and the formation of a parallel channel on the SOL/USDT chart as key factors behind this prediction.

According to Martinez, Solana appears to be moving within an ascending channel, signaling a broader bullish trend despite recent market setbacks. The coin recently bounced off the lower boundary of this channel at $197.87 (0.618), which may act as a solid support zone. This rebound suggests that SOL could see further gains if buying momentum continues.

With sufficient buying pressure, Martinez believes SOL has the potential to break above the $225 level (0.786) and reach as high as $264. Should demand surge dramatically, the altcoin could even challenge its previous all-time high, with an optimistic target of $355 (1.414) based on the Fibonacci extension levels.

However, there are risks if the market fails to sustain its momentum. If SOL falls below $197, the next major support level would be around $181 (0.5). In the event of significant selling pressure, potentially caused by broader economic or market factors, the price could drop to as low as $125 (0).

Solana Outpaces Ethereum in Transaction Fees

On another front, Solana continues to demonstrate its strength in transaction fees. According to data from crypto analytics firm Glassnode, Solana has consistently outpaced Ethereum in 7-day average transaction fees since January 9. While Solana’s fee dominance has slightly declined in February, the gap remains significant, with Solana’s weekly transaction fees exceeding Ethereum’s by over $3 million. This suggests stronger network and user engagement on Solana, despite Ethereum’s dominance in the broader blockchain ecosystem.

Solana’s impressive fee generation is indicative of growing adoption and activity within its ecosystem. As demand for Solana-based applications and services continues to rise, this could further contribute to the coin’s price momentum.

Solana’s Path Forward

Solana’s technical chart suggests the altcoin is currently in a promising position, with key levels indicating the potential for a substantial price rally. While there are always risks associated with market volatility, the ongoing strength of the Solana network and its ability to maintain strong fee dominance over Ethereum reflect an optimistic future for SOL. Whether or not the coin can reach new heights will depend on the continued market demand, network development, and broader economic conditions.