The past 24 hours have been favorable for the cryptocurrency market, with most cryptocurrencies recording gains and the global market cap seeing an increase of 1.91%. Among the top 10 cryptocurrencies by market cap, one of the biggest gainers was Solana (SOL), often referred to as the Ethereum-killer.
According to data from CoinMarketCap, SOL was trading at $21.24 after a 24-hour price increase of more than 5%. Although this price boost wasn’t enough to pull SOL’s weekly performance back into the green – it was down 6.26% over the past seven days – it did strengthen SOL against the market leaders, Bitcoin (BTC) and Ethereum (ETH), by about 3.87% and 3.22%, respectively.
On the flip side, however, Solana’s 24-hour trading volume experienced a 6.94% drop, standing at $366,983,467. Despite this, SOL’s price managed to break above the 9 and 20 Exponential Moving Average (EMA) lines on its 4-hour chart within the past 24 hours. This move allowed the altcoin’s price to reclaim a position above the $21 support level, where it continued to trade at the time of writing.
Another positive development for Solana was that the 9 EMA line on the 4-hour chart crossed bullishly above the longer 20 EMA line. This indicates that SOL’s price has entered into a short-term bullish cycle, with a potential of further price increases in the next 24 hours.
Nevertheless, traders and investors should monitor the 4-hour Relative Strength Index (RSI) line, as it has reached a peak. This could imply that the positive price move SOL experienced in the last 24 hours may soon end, and the trend might change direction.
This bearish hypothesis will be invalidated if the current 4-hour candle closes above the critical $21 mark. Conversely, a close below $21 will result in SOL’s price dropping to the next key support level at $20.45.
It’s worth noting that the recent price increase for Solana comes amid the network’s continuous growth in recent months. In particular, the unique approach to blockchain architecture that underpins Solana has it seen as a strong competitor to Ethereum. While Ethereum currently sits as the second most popular and widely used blockchain platform, its high gas fees and slow transaction times make it more inaccessible to ordinary people. Solana’s key advantage is that it allows for faster, cheaper transactions and the ability to handle an even larger number of transactions per second.
On another positive note, Solana has also been seeing a steady influx of institutional investment. For instance, FTX.US – one of the fastest-growing cryptocurrency exchanges in the US – recently announced a $100 million partnership with Solana. This partnership will see FTX.US offering Solana-native tokens on its exchange, which will significantly expand the market for SOL.
It remains to be seen how the market’s recent favorable conditions will affect Solana in the coming days. However, its consistent growth and increased popularity bode well for its future potential. While Solana still has a long way to go before it truly rivals Ethereum, its performance over the past 24 hours and its continued growth suggest it remains an interesting opportunity for investors and traders.
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.