Solana Holds 10% Weekly Gain Despite 4% Drop Over the Last 24 Hours; Is SOL Ready for a Rally?

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Solana (SOL) has been on an upsurge since the onset of the New Year after witnessing a brutal drawdown in 2022 following the collapse of FTX. Recently, the digital token had also moved above an important Fib resistance level, signaling an upward movement. In this article, let us see what will happen to SOL in the coming few days?

In the aftermath of Sam Bankman-Fried’s FTX Empire, Solana (SOL) prices experienced a bloodbath trigerring a massive outflow of capital from its decentralized finance (DeFi) ecosystem. Although the entire crypto ecosystem was in turmoil, Solana (SOL) received the FTX crash worse than most of its counterparts due to its direct financial ties with the exchange along with Alameda Research, the trading arm of FTX.

However, since the beginning of this year, the altcoin seems to have recovered lost grounds with SOL prices gaining a higher valuation. The price surge can also be credited to several factors including positive investor sentiments following the recent announcement that Helium network is planning to migrate to the Solana blockchain.

Furthermore, on March 20, the Render Network Foundation proposed building its new burn-and-mint equilibrium (BME) model on the Solana blockchain. It is likely that SOL price movement was also influenced by the Solana-based meme coin “BONK”, which saw huge returns at the start of January 2023.

Solana Soars More Than 10% in Weekly Chart

According to CoinMarketCap, Solana (SOL) is down 3.19% in the last 24 hours to trade at $22.32. However, touted as the “Ethereum killer”, the cryptocurrency has consolidated gains of more than 10% over the past seven days. As per crypto market experts, the Solana price has increased since creating a bullish hammer candlestick on March 10 .

Solana Holds 10% Weekly Gain Despite 4% Drop Over the Last 24 Hours; Is SOL Ready for Jump?

The increase also caused a reclaim of the 0.5 Fib retracement support level of $17.60 pointing to a bullish momentum.  It looks like a steady increase above the $21 level with the bulls even pumping the price above the $22 resistance zone.

Regardless of this positive movement, bears are still active near the $22.80 resistance zone with a major bullish trend line forming with support near $21. Experts believe an immediate resistance is near the $22.80 level. The next major resistance is near the $23 level, above which the price could gain bullish momentum and rise towards the $25 resistance.

On the contrary, if SOL fails to clear the $22.80 resistance, it could start a downside correction. An initial support on the downside is near the $21.50 level and the trend line.

Solana Holds 10% Weekly Gain Despite 4% Drop Over the Last 24 Hours; Is SOL Ready for Jump?

Solana Network Bets Big on DeFi

The Solana network has also been betting big on the burgeoning DeFi and non-fungible token (NFT) sectors. Last week, the platfrom also witnessed a massive exchange inflow of nearly 537,352 SOL tokens worth $10.2 million. In recent years, the launch of the Serum DEX on top of the Solana blockchain has garnered significant attention from users.

Additionally, the Solana Wormhole, a cross-chain bridge that allows the transfer of assets between different blockchain networks, has added another feather to Solana’s cap. Earlier this year, the Solana Foundation kicked off Grizzlython, a hackathon that saw more than 800 projects submitting proposals for consideration.

This event that was “describe as the biggest in the history of the protocol”, attracted tremendous attention triggering a massive opportunity to drive adoption of Solana (SOL).The Solana Foundation will soon make available its state-of-the-art new mobile phone dubbed as “Saga” which will come pre-installed with a decentralized application (dApps) store. 

Will SOL Increase in the Coming Days?

It seems, these developments will help to push Solana (SOL) prices in the coming future. However, the price movement will also majorly depend on the macroconomic factors along with the upcoming FOMC meeting, later this week.

Also, as Defi adoption continues to gather steam, the Solana network has a potential bright future. Recently, pseudonymous trader Bluntz_Capital claimed that Solana (SOL) could rally against Bitcoin (SOL/BTC) after taking out its diagonal resistance on the hourly chart. The  crypto analyst tweeted,

“Nice SOL/BTC breakout brewing on the back of a beautiful SOL/USD weekly close.”


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