Solana's Value Rises Amid a Broader Crypto Market Recovery; Next Move Predicted
Summary:
The cryptocurrency Solana (SOL) has seen a surge in value, underpinned by a wider recovery in the crypto market. Based on information from Cointelegraph Markets Pro and TradingView, SOL’s value rose to $159, marking a 4% increase in the last 24 hours and a 32.6% rise from its previous low of around $120 a week ago. This uptick is attributed to several factors including the favorable performance of the Solana network, which accounts for over 30% of all daily transactions across primary layer networks. The analysis also suggests that Solana’s price may continue to climb if it sustains a daily closing value above the 50-day EMA.
The cryptocurrency Solana (SOL) has seen an encouraging upswing, backed by a slight bounce-back across the entire crypto market. The rise in SOL's value, which follows the Bitcoin halving event and deescalation of political unrest in the Middle East, relies on data collated by Cointelegraph Markets Pro and TradingView. These sources indicate the SOL valuation at $159, a surge of 4% within the prior 24 hours and 32.6% jump from its previous low around $120 per SOL observed only a week ago.
Exhibiting commendable performance recently, the token connected to smart contracts has ascended by more than 88% over the preceding six months, and 56% since the start of the year. With a market capitalization standing at $70.6 billion, it now ranks as the fifth largest cryptocurrency.
The substantial growth in Solana's price today is driven by a variety of factors. Foremost, the performance of the Solana network itself is a fundamental player. According to on-chain analytics platform Artemis, Solana commands over 30% of all daily transaction activity across major first and second layer networks. This significant number of daily transactions has allowed it to surpass other high-ranking first layer protocols in regards to transaction fees.
"On-chain finance has found its leading player in Solana, with its total transaction fees skyrocketing approximately 417%, surmounting both BNB Chain and Tron," mentioned on-chain data website, The Block Pro.
Another key indicator of a blockchain network's prosperity can be measured by the total value locked (TVL) in its smart contracts. Solana’s TVL showcased a spike from $3.36 billion on April 18 to $4.02 billion on April 23 - a notable increase of 19% in the span of a week, a rise mirrored by SOL's price.
As per the latest technical setup, Solana's price rally on April 23 is part of a broader positive trend, one that began following the cryptocurrency's bounce back from the $130 price-point on April 17. If SOL manages to maintain a daily closing value above crucial support level provided by the 50-day EMA at $156.42, it will ultimately reflect the bulls’ capacity to uphold the recovery.
A closer look at the MACD’s intersection on April 23 is indicative of a buy signal, hinting that the asset could be undervalued with a bounce-back likely. If this projection holds, SOL might foresee a 28% knee-jerk reaction towards the v-shaped recovery pattern’s neckline at approximately $202 in the coming days. If SOL stays below the 50-day EMA, corrective measures might be necessary for its 100-day EMA support pegged at $139 or potentially the base of the governing chart pattern at $125.
Readers need to bear in mind that this write-up does not dispense investment advice or suggestions. Investments and trading operations inherently carry risks and should be carefully researched by the reader before embarking on any decisions.
Published At
4/23/2024 11:11:51 PM
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