Solana hits record high with SOL price up over 218% in six weeks — What's behind the rally?

Solana hits record high with SOL price up over 218% in six weeks — What’s behind the rally?

Solana (SOL) prices printed another milestone of nearly $85 high on Aug. 27 as traders assessed a flurry of optimistic fundamentals, including Solana’s potential foray into Wall Street.

On Aug. 24, digital asset management firm Osprey Funds registered a first-of-its-kind Solana fund with the U.S. Securities and Exchange Commission (SEC). In doing so, the New York firm hinted at giving institutional exposure to SOL markets as the token’s value surged by more than 4,300% in 2021.

A day later, real-time data feeder Pyth Network announced that it is going live on Solana’s proof-of-stake blockchain. The firm provides “high-fidelity streaming data” from trading firms and exchanges, which allows it to cover global market activity without depending on any single data source.

Pyth will use Solana’s cross-chain communication protocol “Wormhole” to broadcast market data with decentralized applications functioning atop Ethereum, Binance Smart Chain, and Terra blockchains.

The uplifting events assisted the SOL/USD exchange rate rise to a record high of $84.96 on Friday, up more than 218% in six weeks of trading.

Solana daily price chart. Source: TradingView.com

SOL bulls see higher demand prospects

Traders apparently raised their bids on the pair, anticipating that its foray into Wall Street, coupled with adoption in the decentralized finance (DeFi) sector, would boost the demand for SOL tokens in the future.

That is primarily because SOL serves two primary cases in the Solana network. First, users can stake their SOL holdings directly on the network or by delegating them to an active validator to secure the blockchain. In return, stakeholders receive inflation rewards proportional to their staking balance.

Second, users can use SOL as fees for conducting transactions or running smart contracts. Therefore, the more the projects get deployed into the Solana ecosystem, the higher the promise to boost the demand for SOL tokens.

The previous weeks attested to ongoing growth in the Solana ecosystem. For instance, Solana forayed successfully in the non-fungible token (NFT) sector mid-Aug with the launch of Degenerate Apes. The project saw a collection of the 10,000 pictures of comic apes selling out in just eight minutes.

Related: Solana price soars to new highs with DeFi project launch, $70M DEX funding

As it happened, the overall trading volume reached almost 96,000 SOL (over $5.9 million at that time).

Significant move on #Solana against the market. That for me (a guess) suggests cash rotating in for the NFT market that’s just beginning to warm up. — Tyler (@TylerDurden) August 26, 2021

SOL/USD technical setup

Solana’s latest upside move has prompted it to test an upward sloping trendline as resistance, which constitutes an Ascending Channel, as shown in the chart below.

SOL/USD 4H chart featuring an ascending channel setup. Source: TradingView.com

The SOL/USD price rally has slowed down near the Channel’s upper trendline, awaiting either a bullish breakout or a pullback towards the Channel’s lower trendline, with the 50-4H exponential moving average (the velvet wave) near $72.14 as interim support target.

Meanwhile, the daily SOL/USD chart also alerts potential downside risks due to overbought relative strength readings (RSI above 70). Nonetheless, strong fundamentals could keep providing bullish backstops even in the face of interim price corrections.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Solana Price Prediction: Hot Crypto Could Soar to $100 Soon

The Solana price is flying on Friday. The SOL token has jumped by more than 9% and is trading at an all-time high of about $81.57. This brings the total gains this month to more than 157%, making it one of the best-performing coins this week. It has a total market capitalization of more than $23 billion.

Solana is the new kid on the block

Solana is a blockchain project that is backed by Silicon Valley heavyweights like Andreessen Horowitz and Polychain Capital. The recent fundraising valued the company raised more than $314 million, valuing it at billions of dollars.

Solana is a project that helps developers in all industry build decentralized applications. In the past few months, the number of developers building using its technology has risen to more than 400.

These developers love the fact that Solana has little congestion compared to Ethereum. It is also relatively safer compared to other platforms like Binance Chain and Ethereum Classic.

Most importantly, Solana is a relatively faster network that is capable of handling thousands of transactions per minute. At the time of writing, the average transaction per second was more than 2,000. This figure tends to change depending on market activity.

Therefore, the Solana price is bouncing back because investors believe that it is the next big thing in cryptocurrencies. Indeed, there is a possibility that it will overtake some networks like Polkadot that are seeing relatively muted activity.

Solana price prediction

Turning to the four-hour chart, we see that the SOL price has been in a consolidation phase in the past few sessions. Now, today’s jump saw the coin’s price pop above the upper side of this bullish flag pattern. It has also moved above the 25-day and 50-day exponential moving averages (EMA). Also, it struggled to move below the key support at $60.

Therefore, I suspect that the SOL price will keep rising as bulls target the key resistance level at $100. This view will be invalidated if Solana moves below $60.

Solana Up 25%, Hitting New All-Time Highs As Hopes For DeFi Explosion Grow

Solana (CRYPTO: SOL) took a major lift up since its yesterday’s price, as Ethereum (CRYPTO: ETH) killers continue raking in gains.

What Happened: According to CoinMarketCap data, Solana’s price increased by over 25.5% from its yesterday’s low of $66.72 to a high of $83.74. This is the coin’s new all-time high.

The report follows a recent announcement that the Solana development blockchain now receives market price feeds from the Chainlink (CRYPTO: LINK) on-chain data importation system.

This spurred many market onlookers to hope that Solana — a contender looking to house the decentralized finance (DeFi) ecosystem — will soon see a decentralized application Precambrian explosion.

Read also: What is Solana?

Chainlink provides so-called oracles — services that make outside data available to the on-chain smart contracts that DeFi and other decentralized applications (DApps) make use of.

Decentralized exchanges (DEXs), for instance, make use of oracles to know the correct prices of the coins that are traded on the platform. Algorithmic stablecoins such as MakerDAO’s (CRYPTO: MKR) DAI (CRYPTO: DAI), on the other hand, use it to know when the stablecoin’s price is too high or low and use that information to react and maintain the peg.

Read also: How high can Solana go?

With its nearly-instant transactions, high throughput, and transactions that cost orders of magnitude less than Ethereum’s, Solana is now a great contender to host the nest wave of DeFi apps — or even have many transitions to its blockchain.