As a seasoned crypto investor with a knack for spotting promising opportunities, I must say that Solana’s recent bullish breakout has caught my attention. Having closely followed its journey since its inception, I can attest to the resilience it has shown in overcoming adversity. The robust support level established above $128 and the consistent surge towards $160 are strong indicators of a potential rally towards $250, provided Solana’s price maintains its upward momentum.
Over the previous seven months, Solana’s price has built a strong foundation of support above $128, paving the way for its current bullish surge. This large-cap cryptocurrency, valued at approximately $98 billion when fully diluted and with an average daily trading volume of around $4.7 billion, experienced an increase of over 8% in the past fortnight, surpassing a significant resistance level of about $160 for the first time since late July.
Despite Solana’s price not being completely clear of trouble yet, there’s a strong possibility that it could experience an upward surge towards its all-time high. From a technical viewpoint, for Solana’s price to continue rising towards $250 over the coming weeks, it needs to maintain a consistent pattern of closing above the July 2024 peak of approximately $190.
The upcoming surge for Solana (SOL) could heavily depend on the movements of Bitcoin (BTC) and Ethereum (ETH). Given that these altcoins tend to mirror the trends of Bitcoin, which itself has a strong relationship with gold, it’s reasonable to expect a bullish breakout in the near future.
Essentially, the world of cryptocurrencies is eagerly anticipating another potential interest rate reduction from the Federal Reserve as we approach the 2024 U.S. general election.
Solana Threatens Ethereum Web3 Dominance
In the last year, the Solana Network has flourished into a bustling Web3 environment, overcoming the effects of the FTX and Alameda Research collapse. As per recent market figures, the Solana network currently holds approximately $6.41 billion in total value locked, which is its highest since January 2022.
Over the past year, faith in the Solana system has experienced notable growth, as its stablecoin market capitalization surpassed $3.5 billion. Moreover, it’s worth noting that the number of active addresses on the Solana network within the last 24 hours reached approximately 7.62 million, compared to Ethereum’s 397,000 daily active addresses.
The significant surge in transactions on the Solana network can be primarily linked back to its vibrant meme coin sector. This sector has grown exponentially, reaching a staggering market capitalization of more than $11 billion, and averaging approximately $2.5 billion in daily trading volume.
As a result, Solana’s DEX trading volume exceeded $2 billion for the third consecutive day, placing it ahead of Ethereum and all other leading blockchains. Simultaneously, Pump.fun, the token issuer on Solana, is nearing 1 million SOL in total collected fees and has facilitated the creation of over 2.5 million meme coins.
From another perspective, the Ethereum network continues to encounter a lower-than-expected interest from institutional investors, which is evident in the significant withdrawals observed in U.S.-based Ether Exchange Traded Funds (ETFs).
Although Ethereum boasts more than a dozen scaling solutions, its reign in the Web3 realm faces significant challenges from competitors like Solana and newer platforms such as Toncoin (currently valued at $5.26).
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2024-10-22 18:06