Solana (SOL) has been making waves, with an impressive 40% increase in just three weeks. This rise comes despite a noticeable decline in interest from market participants, demonstrating the potential of this digital asset. Interestingly, Solana’s price recovery was largely independent of traditional on-chain metrics such as development activity and social dominance. Even the recent Securities and Exchange Commission (SEC) crackdown on crypto, which caused many assets to falter, has not dampened Solana’s upward trajectory.
Solana’s robust network developments lead to bullish growth
Recently, Solana (SOL) made a significant achievement by surpassing the $20 price mark, a development that has generated significant excitement among cryptocurrency investors and enthusiasts. Solana’s bullish momentum continues to accelerate, with DeFiLlama ranked sixth in terms of weekly decentralized exchange (DEX) volume, after an impressive 85% increase.
Solana’s growth trajectory is remarkable, with accumulated volume in excess of $55 billion and 24-hour transaction volume in excess of $40 million. In addition, the trading volume of Non-Fungible Tokens (NFTs) on Solana’s platform has increased significantly, as highlighted by Sentiment.
Despite a recent minor dip, USD volume for NFTs on Solana remains significantly higher than last year, near the $3 million mark.
A closer look at the Open Interest (OI) chart for SOL provides additional evidence of the continued bullish outlook over the past few weeks.
A report on the price of SOL shows a steady increase in OI, mirroring the price increase since June 20. This data suggests that speculators are taking a strong bullish stance on SOL’s future potential as OI hits $248 million.
Although the buying pressure may not be as great as to push the price further. The uptrend in SOL’s performance could continue if Bitcoin (BTC), the dominant cryptocurrency, sees further positive moves.
What’s next for the SOL price?
The extended wick on Solana’s candlestick indicates that the bulls are vigorously defending the $18.8. A small upside for the bears is their success in preventing the price from breaking past the immediate $21 resistance. At the time of writing, the SOL price is trading at $20.8, up more than 6.3% in the past 24 hours.
The 20-day EMA at $19.6 on the 4-hour price chart has started to rise and the RSI is in the positive zone, suggesting that the buyers are currently in control. The bulls will likely make another attempt to break the barrier at $21. If they succeed, the SOL price could potentially rise to $22.36 and then $24.02.
However, if the price continues to fall and dip below the moving averages, it could be the start of a more substantial correction. In this scenario, the SOL price could drop to the robust support zone between $14.3 and $17.