Solana (SOL) is among previously obscure cryptocurrencies that have surged in value in recent months correlating with the general market sentiments.
Operating as a proof-of-history blockchain, SOL attained an all-time high price of $54.23 on May 18 backed by the increasing utility for the platform’s ecosystem. After recording the recent low of $22.08 on May 23rd the token has surged 55.07% trading at $34.19 by press time.
Solana’s investors continue to bet the blockchain will grow to challenge ethereum. Worth noting is that developers of Solana ensured the platform offers solid theoretical support for attaining greater value by deflation due to the high versatility as a utility token.
Since bursting to the scene, Solana is recording a surge in utilization from reputable institutions.
Recently, OpenOcean, a CeFi and DeFi aggregation protocol integrated the Solana network to offer an alternative DeFi aggregation system to other Solana-based aggregators.
Elsewhere, DeFi Alliance, a startup accelerator with backing from Coinbase announced support for Mercurial Finance, the first Solana-based project. DeFi Alliance invested $100,000 in Mercurial.
The increased activity around Solana’s ecosystem is giving more exposure to SOL. The exposure was further accelerated with a recent listing on Coinbase Pro.
Will SOL hit $50?
Based on technical analysis, SOL is gearing for a major move towards $50, trading above the moving average of 50 since January 2021. The token is on a rally after showing exhaustion of the bullish momentum, which had led to a minor retracement.
Trading above $50 is a possibility factoring in the moving average alongside the increasing community support for the Solana blockchain. Additionally, the listing on Coinbase Pro is a major boost for the token with exposure to a wider market.
Furthermore, SOL is recording a low trading volume compared to historical performance. With the low trading volume, together with a breakout triangle in play, SOL might experience sharp volatility as trading volume expected to recover.
The breakout will either lead to a price correction or an upward movement. Based on the technical analysis, SOL will first test the $40 mark on its way to $50, and then, if buying pressure is sustained, SOL could be gearing towards another all-time high.
It is worth noting that Solana still derives a lot of its price action from market sentiment. Therefore, investors should watch what happens to bitcoin and ethereum.