2024-8-8 13:05 |
Solana (SOL) has experienced a dramatic price rebound, increasing by over 39% in just 48 hours. This rally has seen SOL’s price rise from a low of around $110 to $152.92 at press time, setting an all-time high SOL/ETH ratio.
Analysts attribute this surge to a combination of broader market recovery and Solana-specific developments. The altcoin, which is the native token of the high-performance Solana blockchain, has outpaced many of its peers, including Ethereum.
Why is Solana price rising?Generally, global markets, including major stock indexes like the S&P 500 and Dow Jones Industrial Average, are showing signs of recovery after recent sell-offs.
This broader positive market sentiment has spilt over into the cryptocurrency space, benefiting assets like Solana.
Tim Enneking, managing partner of Psalion, pointed out that the recent price movements are largely driven by shifts in market sentiment, with periods of irrational fear followed by relief.
Moreover, Solana’s robust fundamentals have played a crucial role in its price appreciation. Key metrics such as growth in active users increased decentralized exchange (DEX) volumes, and overall ecosystem expansion reflect the platform’s underlying strength.
Pat Doyle, a blockchain researcher for Amberdata, emphasizes that despite recent volatility, Solana continues to demonstrate strong fundamentals, with its market cap at 22% of Ethereum’s, indicating the potential for further growth.
Increasing demand for Rust developersDespite the recent SOL price crash as the global markets plummeted, Solana blockchain has become a darling for meme coin developers, resulting in over 561% surge in SOL’s price over the past twelve months according to Coinmarketcap data.
This increased Solana meme coin frenzy that began in early 2024 has significantly contributed to the rise in demand for Rust developers.
Rust, the primary programming language for the Solana blockchain, is becoming increasingly popular among blockchain firms building high-performance distributed systems.
Notably, the demand for Rust engineers has been driven by the meme coin mania and broader tech trends favouring Rust for its efficiency and performance.
The combined market cap of Solana meme coins has reached $6.28 billion, surpassing Ethereum layer 2 Base’s meme coin market cap of $1.2 billion. This substantial market activity has led to a surge in job postings for Rust developers.
Key SOL price levels to watchFrom a technical analysis standpoint, Solana has surpassed several significant resistance levels. The price advanced beyond the $129.82 and $142.08 thresholds, exceeding the 38.2% Fibonacci retracement level of the recent decline from $184 to $110.
SOL Fibonacci retracement level. Source: TradingViewThe next critical resistance is around $151.99, aligning with the 50% Fibonacci retracement level.
Despite the bullish trend, analysts warn of continued market volatility. If SOL does not break through the $151.99 resistance, a pullback may occur.
Key support levels to monitor are $142.08 and $129.82, with a potential drop below these points possibly leading to a retest of the $110 region.
As Solana continues to expand its ecosystem and attract developer talent, its influence in the cryptocurrency market is expected to grow.
In addition, the upcoming features and upgrades anticipated to be announced at the Solana developer conference Breakpoint, are expected to position the blockchain and its native token, SOL, for further advancements and adoption.
The post Solana (SOL) rebounds by 39% after testing $110 appeared first on Invezz
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