The price of SOL has found a solid bottom and is on its way back up again, crossing the $220 mark, following the price action of Bitcoin and Ethereum. It successfully advanced over the important resistance levels of $225 and $230, describing a good bullish momentum.
This recently occurred over the 50% Fibonacci retracement from the recent decline which occurred from a high of $246 to a low of $215. As seen on the SOL/USD hourly chart, there was the break of a bearish trend line at around the $232 area, which has positive implications going forward.
For now, it appears that solana is priced around $235 and the 100 hour simple moving average, it is interesting to note that the digit is still struggling to go past the $240 area which is at the 76.4% Fibonacci region of the same downward move.
The subsequent hurdles are $246 and $250 with the most critical focus level being $250. If Solana is able to make a close above $250, the altcoin can be expected to test further higher areas. Beyond that, the estimated areas where price advances to is $265 and with strong momentum even $280.
More Dips Loading for SOL?
There is a risk that Solana keeps bearish pressure if it is unable to cross the $240 barrier level. $230 would be the first level of support in the zones, and this is the level that matches with the 100-hour simple moving average. The next critical support level would still be around the $220 area.
If indeed the pricing trend extends below the $220 level, it may move to denote the$215 levels. If any more price drops beyond $215 occur these may only extend further to potentially cause prices right up to the $200 region in the short term time frame.
Price Pumps as Grayscale Files Solana ETF
Following Grayscale’s application for an ETF that would specifically focus on the token, SOL appreciated by approximately 6% and trades at $235. This particular rise follows a brief period when the token dropped 12% to $215, further exposing the volatility nature of the token. Even with the volatility, Solana still proves to be a useful asset in the crypto market.
Grayscale’s action marks a parallel with VanEck, 21Shares and Canary Capital filing for Solana-backed ETFs, which made Solana a prominent player in the market. The current climate at the SEC with supportive crypto panelist Paul Atkins in position has raised the expectations for approval.
Solana Ecosystem and Adoption Grow
The general trends of Solana’s activity on the blockchain present some insights. Soaring price action is naturally accompanied by a more gradual growth of the consumer interest, which remains less than the market hype. In any case, the blockchain has achieved a peak volume of transactions on the network this year, which is a sign of increasing levels of adoption.
With a unique proposition of speed, the token is able to bring in developers and projects since scale is unbarred especially for DeFi and NFTs and the ventures are endless. These segments continue to be the core for its expansion and advancement.
Over the period of one month, the crypto has managed to increase by 43%, increasing its total market capitalization to $112 billion. With 474.90 million minted tokens and an average daily volume of $8.76 billion, the cryptocurrency is indeed under the spotlight.
As a conceptualization of this scenario, Solana has started showing strong recovery signs further asserting that it is a key player in the cryptocurrency. It has been able to show its price bounce in line with the increasing on-chain activity. Further developments such as the filing of the ETF by Grayscale makes the case better.
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