What’s with the price of Solana (SOL)?

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As an analyst with a background in traditional financial markets and several years of experience in the cryptocurrency space, I’ve seen my fair share of market cycles and price movements. Solana’s explosive 1,100% price appreciation from September 2023 to mid-March 2024 has been nothing short of impressive, making it a top contender among large cap cryptos this bull market.

In the current bull market, Solana has stood out among larger cryptocurrencies with remarkable growth. However, the price has remained relatively stable for the past 14 weeks. The question now is: will we experience further price consolidation, or is another significant price surge on the horizon?

Solana huge 1,100% price appreciation

As a researcher studying the blockchain landscape, I’d express it this way: Solana is positioning itself as a formidable competitor to Ethereum. With its high-speed and cost-effective transactions, Solana aims to take the throne in the layer 1 network category. However, Ethereum still holds significant sway, and the success of Solana’s Fire Dancer validator client launch later this year will be a crucial factor determining its chances of dethroning Ethereon.

From a cost standpoint alone, Solana’s price surge of approximately 1,100% between September 2023 and mid-March 2024 is a clear indication that this cryptocurrency warrants our closest attention.

After an exhilarating price spike, the Solana token ($SOL) required a pause for respite, mirroring the broader cryptocurrency market trend. A prolonged phase of stabilization became essential for rebalancing the price and establishing a solid foundation for future growth towards new record highs.

Lower highs vs higher lows

From my analysis perspective, I’ve noticed that the daily price chart for $SOL reveals robust support between the levels of $126 and $138. Although we have witnessed a decline in new highs since the peak at $210 in mid-March, there has been a consistent pattern of higher lows reaching back to September 2023.

An amazing $SOL weekly chart

The weekly chart for Solana ($SOL) is impressively robust. The support level at $138 exhibits significant strength, rooted in the price history from 2021 and 2022. Moreover, the recent price dips serve as evidence of its resilience during bearish market conditions.

As a researcher observing market trends, I notice that the volume is gradually decreasing. This reduction in trading activity could signal an imminent significant price move. If this trend continues downward, the next major support level for the price is around $100. However, if an uptrend is on the horizon, the potential targets for the explosive price increase could be $175, $200, $250, and even reaching the all-time high at $260.

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2024-06-20 17:09