As a seasoned researcher with years of experience navigating the volatile cryptocurrency market, I’ve seen my fair share of ups and downs. However, the recent performance of Solana ($SOL) has left me intrigued. Despite a significant 42% reversal within two weeks, its robust bounce back by 26% in a short span is noteworthy.
In just under two weeks, the value of Solana ($SOL) dropped by a significant 42%. But surprisingly, within the recent days, there has been a noticeable rebound for $SOL with a 26% increase already. The question remains: Will Solana ($SOL) outshine both Bitcoin ($BTC) and Ethereum ($ETH) in terms of growth during the rest of this bull market?
Solana major tech still to come
Solana is rapidly approaching Ethereum’s position and is currently performing better than Bitcoin. We might be more than halfway through this ongoing bull market, but if the market takes a turn prematurely into another bear market, that could change. Notably, Solana has been the top performer among large-cap cryptocurrencies so far, and the Firedancer feature hasn’t been launched yet.
A fully functioning Firedancer, which is a validator client built on Solana, could be the equivalent of the traditional finance stock exchange – the Nasdaq. A live demo of the Firedance client in 2022 recorded a blazingly fast 1 million tps per second, which far exceeds what the Visa network can do for example.
With a significant advancement in technology on the horizon, and the prospect of a Solana Spot ETF being introduced next year, it seems unlikely that Solana will continue to trail other major cryptocurrencies.
$SOL battles to reenter triangle
As an analyst, I’m observing the fluctuations of SOL in terms of USD. At present, it appears to have dipped back into a triangular pattern. However, whether it will sustain this trajectory until the market closes on Tuesday remains uncertain and requires further observation.
If the current market conditions hold and SOL (and possibly BTC and other cryptocurrencies) manage to withstand potential sell-offs in traditional stock markets today and throughout the week, there’s a possibility that SOL could return to its local peak of $194. However, this might take some time. Levels around $122 and $110 are key support zones below which the price could stabilize.
$SOL rises against $BTC again
For the SOL/BTC exchange, it’s worth mentioning that Solana ($SOL) is climbing again following its breakout from the wedge pattern and reaching the resistance level at 0.0027 sats. The price has reclaimed the mid-range (represented by a dotted blue line) and seems to be aiming towards the resistance point once more.
Final resistance levels for $SOL against $ETH
For the SOL/ETH combination, the scenario is quite comparable, but a crucial difference exists: The current Solana ($SOL) value has reached its horizontal resistance point. If $SOL manages to surpass this level, climb slightly above and breach the peak high, subsequently overtaking its all-time high at approximately 0.061 ETH, uncharted territories of price growth would be in sight for Solana thereon.
Given the current situation, the crypto market’s response to the ongoing unwinding of the carry trade will play a significant role, along with other ongoing selling activities. Yet, with central banks reducing interest rates and global liquidity increasing, there might be a positive impact on all markets in the late summer season.
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2024-08-06 15:10