As the cryptocurrency market continues to trade sideways, the decentralized finance (DeFi) platform Solana (SOL) has emerged as one of the standout tokens.
In this regard, SOL has experienced significant buying pressure in the last 24 hours. By press time, Solana controlled a market capitalization of $8.96 billion, reflecting an inflow of $1.02 billion within the last 24 hours.
The buying pressure has also influenced the asset’s price trajectory, comfortably holding above the $20 support level. Currently, SOL is valued at $22.17, with daily gains of nearly 12%. On the weekly chart, Solana has seen an increase of over 20%.
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Why Solana is pumping?
While Solana has generally moved in tandem with the overall market, the recent surge in asset price lacks a specific identifiable catalyst. However, it is worth noting that the asset’s gains align with significant network partnerships.
One notable instance is the announcement of collaboration between Coca-Cola (NYSE: KO) in Serbia and Solana NFT platform SolSea for a non-fungible token (NFT) offering during a music event. As part of this deal, the beverage company will distribute 100 limited edition hoodies accompanied by NFTs to select participants.
In the meantime, social media buzz surrounding Solana has surged with bullish sentiment. On Reddit, Solana mentions having witnessed a notable spike in the past week, as reported by Santiment, an on-chain analytics firm. Considering Reddit traders’ influence on market movements, it is plausible that they have played a significant role in driving Solana’s recent price action.
Interestingly, Solana faced delisting from several US exchanges in June due to a Securities Exchange Commission (SEC) lawsuit alleging that SOL is unregistered security. The Solana Foundation has expressed its commitment to challenging this allegation. However, regardless of the ultimate outcome, SOL seems poised for a protracted struggle ahead.
Additionally, following the hurdles Solana encountered in the aftermath of the FTX bankruptcy, the platform’s remarkable recovery signifies a promising path for its investors. The network’s technology, facilitating rapid, reliable, and expandable decentralized applications and cryptocurrency services, seems to maintain its allure in the market, paving the way for further potential gains.
Solana technical analysis
Elsewhere, Solana’s technical analysis on TradingView maintains a bullish outlook. The one-day sentiment summary shows a “strong buy” sentiment rating of 16. The moving averages indicate a “strong buy” at 14, while the oscillators remain neutral at 8.
However, as Solana expresses bullish sentiments, a Finbold report revealed that the asset might be staring at a possible price decline in the coming months. In particular, the self-learning machine algorithm used by the cryptocurrency analytics platform CoinCodex has set the price of Solana at $16.18 on the last day of 2023.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
