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