In the ever-evolving landscape of cryptocurrency, Solana (SOL) has emerged as a formidable contender to Ethereum’s Layer-1, staging an impressive surge of over 113% in the last month alone.
As the coin continues to break through resistance levels, recent developments surrounding BlackRock’s Ethereum ETF application have propelled SOL’s price to unprecedented heights, breaching the $47 mark and maintaining a 7% upward trajectory.
The SOL Price Rally:
The recent surge in SOL’s value has not been a fleeting phenomenon. Over the past few weeks, the altcoin has not only shattered a 15-month-old resistance level at $46 but has sustained its momentum above this crucial point.
Analysts suggest that for a bullish outlook to solidify, a daily candlestick closure above this level and subsequent testing as support are essential.
However, the crypto market being what it is, potential downturns are always a possibility. If investor sentiment shifts and profits are secured, SOL could face a dip.
Losing support at $46 may open the door for a rebound from $36. Yet, a more significant drop, closing below this level, might negate the bullish outlook, potentially leading SOL to $31.
Why SOL Could Surpass $50:
Jacob Canfield, a well-known crypto trader, has expressed optimism about Solana’s future performance. According to Canfield, Solana is poised to be one of the standout performers in the current bull market cycle.
He highlighted a few factors contributing to this bullish sentiment:
- SOL.D (Solana Dominance): Even at the market’s peak, Solana dominance failed to surpass 3%, indicating substantial room for growth.
- SOLBTC and SOLETH: Solana is currently breaking out from weekly resistance levels against both Bitcoin and Ethereum, signaling the potential for a parabolic rally.
- ETH.D (Ethereum Dominance): Ethereum dominance is on the decline, and if this trend continues, with Ethereum dropping to 2019-2020 levels, SOL could emerge as a significant winner in the market cycle.
SEC Approves FTX Revival:
Adding fuel to the SOL price surge is the optimism surrounding the potential revival of the bankrupt exchange FTX, an early investor in Solana.
SEC Chair Gary Gensler emphasized the importance of a legal revival process, and despite FTX systematically selling unlocked SOL from its wallet over the past two weeks, the Solana rally shows no signs of slowing down.
In a market where every development can make or break a coin, Solana seems to have found its stride.
As it continues to defy expectations and break through resistance levels, the crypto community watches with bated breath to see if SOL will indeed surpass the $50 mark, making it one of the most talked-about success stories of the current crypto bull market.