March 27, 2024
Solana's Meteoric Rise: SOL Surges
Altcoins News

Solana’s Meteoric Rise: SOL Surges

The price of Solana’s native token, SOL, has surged more than 17% in the past week, reaching a peak of $115 on February 13th. This recent rally has propelled SOL past Binance’s BNB token, making it the fourth-largest cryptocurrency by market capitalization, according to CoinMarketCap.

Airdrops, along with the network’s provision of more cost-effective solutions and its ability to recover from recent outages, are the driving factors behind Solana’s bullish momentum.

What factors are likely to drive SOL towards $150 and beyond?

Solana’s market capitalization has surpassed that of BNB, securing the 4th position.
The climb to $115 for SOL pushed its market capitalization to $50.32 billion, surpassing its competitor, BNB, and claiming the fourth position in the market.

SOL has seen a 20% increase over the past month and a 72% increase year-to-date (YTD), leading to a growth in its market capitalization. In December 2023, SOL surpassed XRP in market value, solidifying its position among the top 5 cryptocurrencies.

The increase in Solana’s price has led to heightened interest in its ecosystem and increased activity on its blockchain.

The surge in SOL’s price coincides with the Crypto Fear and Greed Index reaching its highest level since November 2021, when SOL reached $260. This milestone was achieved a day after Bitcoin crossed the $50,000 mark for the first time in two years.

Solana remains undeterred by the 5-hour network outage.
Despite the network outage on February 6th, SOL managed to surpass BNB. The outage, lasting nearly 5 hours, prompted validators to coordinate a software update and restart from a specific slot.

During this downtime, exchanges halted the withdrawal and deposit of SOL and Solana SPL tokens, affecting users’ ability to interact with DApps. Despite experiencing twelve similar outages in the past two years, Solana’s closely coordinated software development enables it to implement upgrades faster than networks compatible with the Ethereum Virtual Machine (EVM), explaining why SOL was not significantly impacted by the recent downtime.

Is the rounded bottom pattern in SOL’s chart indicative of future trends?
The price action of Solana has formed a rounded bottom chart pattern on the daily chart, a highly bullish signal projecting a significant upward breakout once the price surpasses the neckline.

In SOL’s case, a daily candlestick closure above the neckline at $120 would confirm a bullish breakout, with a target set at $159, representing a 41% increase from the current price.

This positive outlook is supported by the rising relative strength index (RSI), indicating continued buyer dominance in the market.

On the downside, a breach below the pattern would suggest a failure to sustain higher levels, with initial support expected at the psychological level of $100, followed by support at $95 and eventually the pattern’s bottom at $82.

Image by Solana

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