Altcoins
Solana Price Soars: Closing in on the $30 Milestone
Solana price has staged significant growth over the past few days on the back of the Ripple Labs landmark court win against the US Securities and Exchange Commission. The altcoin has jumped by 23.72% in the past week and more than 68% in the past month. SOL price has also climbed by more than 172% in the year to date, surpassing Bitcoin. At the time of writing, Solana was trading 3.42% higher at $27.20.
What’s Driving SOL?
Solana price has been on a bullish trajectory for the past few days against the backdrop of the recent win for Ripple against the SEC. The digital currency skyrocketed more than 48% following the news before pulling back slightly.
Last week, US District Judge Analisa Torres agreed to arguments made by Ripple Labs that roughly half of its sale of the XRP token did not violate federal security laws. Ripple, the company behind the XRP token, has been arguing that XRP was not a security as the SEC deemed it to be. Even so, Judge Torres ruled that XRP was solely a security when sold to institutional investors, marking a partial win for the SEC. Ripple Labs has been battling the lawsuit against the SEC for more than 3 years since 2020.
Solana price positively reacted to the federal ruling, in tandem with the global crypto market. The ruling buttressed claims by crypto bigwigs, Binance and Coinbase made earlier last month when the Wall Street regulator filed a lawsuit against the companies. In the lawsuit, SEC termed a slew of cryptocurrencies, including Solana, Cardano, and Polygon, to be securities. The clear win for Ripple Labs has reignited hope for the cryptocurrency market of a win against the regulator.
Solana Price Technical Analysis
Heading into 2023, the Solana price was already in the grips of a downtrend that stretched back to November 2021. Since then, the altcoin has staged a strong recovery, jumping by more than 175% above its lowest level in 2022. Even so, Solana has constantly failed to move above the important resistance level of $30 since 2022. However, SOL briefly breached the aforementioned level on Friday before pulling back further.
A look at the daily chart shows that the SOL price has been on an uptrend for the past few weeks, characterized by the ascending channel in yellow. The asset has remained above the 50-day and 200-day exponential moving averages, as well as the 100-day and 200-day simple moving averages. Its Relative Strength Index (RSI) has moved higher into the overbought zone, with the Moving Average Convergence Divergence (MACD) indicator hinting at a continued uptrend.
Therefore, the Solana price is likely to continue moving higher in the ensuing sessions amid confidence by investors. A move above the crucial level of $30 will have buyers eyeing the next resistance level at $40. On the other hand, a move below the 200-day EMA at $22.50 will invalidate the bullish thesis.
SOL Price Chart
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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