Solana (SOL) has been making waves, rallying an impressive 40% in just three weeks. This surge comes despite a noticeable decline in interest from market participants, demonstrating the potential of this digital asset. Interestingly, Solana’s price recovery has been largely independent of traditional on-chain metrics such as development activity and social dominance. Even the Securities and Exchange Commission’s (SEC) recent clampdown on crypto, which saw many assets falter, has not dampened Solana’s upward trajectory.
Solana’s Robust Network Developments Trigger Bullish Growth
Recently, Solana (SOL) marked a significant achievement by surpassing the $20 price point, a development that has ignited substantial excitement among investors and cryptocurrency enthusiasts. The bullish momentum of Solana continues to accelerate, with DeFiLlama ranking it sixth in terms of weekly decentralized exchange (DEX) volume, following an impressive 85% surge.
The growth trajectory of Solana is remarkable, boasting an accumulated volume of over $55 billion and a 24-hour transaction volume that surpasses $40 million. Additionally, the trading volume of Non-Fungible Tokens (NFTs) on Solana’s platform has seen a considerable increase, as highlighted by Sentiment.
Despite a recent minor dip, the USD volume for NFTs on Solana remains significantly higher than the previous year, nearing the $3 million mark.
A closer look at the Open Interest (OI) chart for SOL offers additional proof of the sustained bullish outlook in recent weeks.
A report on SOL’s price shows a steady climb in the OI, mirroring the price surge since June 20. This data suggests that speculators maintain a strong bullish stance on SOL’s future potential as OI touches $248 million.
Although the buying pressure may not be as intense to push the price further. The upward trend of SOL’s performance could continue if Bitcoin (BTC), the dominant cryptocurrency, sees further positive movement.
What’s Next For SOL Price?
The extended wick on Solana’s candlestick indicates that the bulls are vigorously defending the $18.8 mark. One minor advantage for the bears is their success in preventing the price from breaking past the immediate resistance at $21. As of writing, SOL price trades at $20.8, surging over 6.3% in the last 24 hours.
The 20-day EMA at $19.6 on the 4-hour price chart has begun to rise, and the RSI is in the positive zone, suggesting that the buyers are currently in control. The bulls will likely make another attempt to breach the barrier at $21. If they manage to do so, the SOL price could potentially leap to $22.36 and subsequently to $24.02.
However, if the price continues to decline and falls below the moving averages, it could signal the onset of a more substantial correction. In this scenario, the SOL price could drop to the robust support zone between $14.3 and $17.
