Solana (SOL) has been one of the featured cryptocurrencies in this bullish cycle. The Cryptocurrency created by the Ukrainian Anatoly Yakovenko seeks to stand out in the niche of networks specialized in smart contracts, until now dominated by Ethereum.
Something that drove the rise of SOL in 2024 has been the great interest generated by memecoins. The fact that Solarium offer fast and cheap transactions prompted the creation of humorous tokens on this network.
A little over a month ago, SOL broke its all-time high upon passing the $260 barrier. But the rise could not be sustained over time.
As can be seen in the chart below, solana is trading at $189 at the time of this publication (the meaning of the yellow and green lines is explained later in this text):
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Solana (SOL) price from September 2023. Source: TradingView.
But, according to theBitcoin/” target=”_blank” rel=”noreferrer noopener”> technical analysissolana still has the strength to continue rising. Various indicators and patterns show this.
First of all, as could be seen in the image above, the cryptocurrency is located at the bottom of a bullish channel (yellow lines). Unless it breaks strongly from that channel to the downside, the current price zone would be a good rebound point for SOL.
Bearish corrections are normal in any financial asset and do not mean that the uptrend is over. On the contrary, they are considered healthy because they allow more organic growth without reaching overbought areas.
Also, if we put on the table the support and resistance theory (which is explained in depth in the Criptopedia, educational section of CriptoNoticias), we see that SOL has bounced off the key $175 level (green lines). It is essential that it does not fall below that area, in order to continue its upward path in the short term.
And what is missing then for Solana to regain the strong bullish momentum it brought? Perhaps, as the inauguration date of the president-elect of the United States, Donald Trump, approaches, both SOL and other crypto assets will rise in price. The thing is Trump has promised to end the “persecution” of the cryptocurrency industry.
Trump promised during Bitcoin 2024 to create a strategic reserve of BTC if he won the election. Source: Investopedia.
If it were explicitly confirmed that solana is no longer considered a security by the SEC, it would be greatly bullish for its price as US exchanges could list it without fear of retaliation.
It is worth clarifying that not everyone is so optimistic about solana. Analyst Brad Thomas has questioned the “fundamentals” of solana and believes there is more marketing than solid reasons for growth. Thomas says:
“SOL’s long-term success will depend on its ability to maintain meaningful use cases and grow its ecosystem beyond the temporary excitement of memecoins.”
Brad Thomas, financial analyst.
Perhaps, this is a critical moment for Solana. If it manages to demonstrate that it attracts a large number of “serious” users, projects and developers (and not just “memecoiners”), the network will be able to increase the perception of value about it and that will attract a greater number of investors.
Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias. The author’s opinion is for informational purposes and under no circumstances constitutes an investment recommendation or financial advice.
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