The governance token of the Solana Blockchain, SOL has witnessed an 18% surge in price amidst the choppy state of the cryptocurrency markets. The digital asset seems to be recovering and aiming to break the resistance levels above $44.
SOL has gained serious momentum this year as it went from about $16 to an ATH of $58 last month, May. The spontaneous rise has been one of the factors that attracted traders and investors to the digital asset. SOL is one of the best performing assets of the year as it has given good returns to its holders and investors.
The Solana project was founded by Anatoly Yakovenko in 2017. It is a decentralized blockchain that uses proof of history to enable the network to operate very fast. It is also a blockchain that operates at low cost. Users don’t have to worry about fees rising with the increased number of users.
An ICO was said to have been organized that raised about $25 million dollars for Solana back in 2020. The CEO of FTX exchange, Sam Bankman-Fried is a fan of the project and another fundraise is said to be in the works. Solana is known particularly for the speed at which transactions are executed on its blockchain.
Solana Price Analysis
The 11th largest cryptocurrency with a market cap of $11.8 billion dollars is currently trading at $42.82 at the time of this publication. The market is generally not stable at the moment. Scalping remains the only option for expert traders.
SOL is bullish in the long term. For the short term, if BTC stabilizes and rises above 42k levels, SOL might witness a rise in price above the previous ATH. It is currently recovering and aiming to break the resistance levels at $44. The next resistance is at $52. Breaking $44 might see it ride to $50 if BTC doesn’t fluctuate. Failure to break the resistance might reject the price of SOL and it might continue to range.
The bull run cycle isn’t over and BTC needs to drop to 25k levels. This will enable fresh injection of cash into the market to push it to $70k. Whatever the case may be, if BTC gets sent to $70k, SOL will reach a new ATH.