Solana (SOL) has rallied persistently over the last couple of weeks, thanks to the general positive outlook of the crypto market over the last two weeks. Prior to this run-up to $32, SOL bulls struggled to sustain support at $20, not to mention, the nearly paralyzing drop to $8 after the FTX implosion in November.
Solana Price Prediction: Can SOL Rally To Hit $40
The last couple of weeks have seen increased interest in cryptos, especially in Bitcoin, whose rally to $35,000 stems from optimism around the anticipated approval of a spot exchange-traded fund (ETF) and select altcoins that investors believe can quickly rally in double-digits.
Solana price is trading at $31.26 on Tuesday during American business hours, up 8% in 24 hours. A 47% increase in trading volume coupled with an 8% spike in the market cap confirms the improving investor interest. SOL has also displaced Cardano (ADA) to become the seventh-largest crypto.
Interest in Solana goes beyond the native token SOL, as the protocol is continuously being adopted in the Web3 space. For instance, Ryder, the first hardware wallet secured by a person’s social circle, has announced it is tapping the Solana blockchain for “its unparalleled scalability, and rapid transaction capabilities.”
Ryder will integrate @solana and join the mission of unlocking value beyond browsers and phones.
Imagine a world where Web3 seamlessly weaves into our daily lives.https://t.co/wq7Y0RJu6N
— Ryder (@Ryder_ID) October 24, 2023
According to Ryder, Solana’s bet on hardware wallets provides a framework for the ultimate decentralization of its ecosystem without dependence on big tech giants.
“In alignment with our commitment to pioneer more real-world use cases for digital assets and enable true decentralized economy, we will integrate Solana upon launch to fuel our shared vision of “Web3 on the go,” Ryder said via a blog post. “Mainstream adoption is not just about innovation but also accessibility.”
Solana Price Decouples From Altcoins
As mainstream adoption of SOL, the token, and Solana the smart contracts platform grows, chances of a larger recovery increase. The breakout from support at $20 was validated when SOL stepped above various key levels like the upper falling trendline and the resistance at $27.
Double golden cross patterns encouraged traders to seek more exposure to SOL while looking forward to gains above $30.
A golden cross is a bullish pattern formed when a short-term moving average crosses above a long-term moving average. In Solana’s case. The 21-day Exponential Moving Average (EMA) (red) flipped initially above the 100-day EMA (blue) and recently the 200-day EMA (purple).
The run-up above $30 elevated Solana as one of the best-performing cryptos in October but resistance at $32 could endanger the uptrend, especially with the Relative Strength Index (RSI) retreating from the overbought region into the neutral area.
Support at $30 is crucial for the continuation of the uptrend and could help bulls avoid counting losses if Solana dips into the $20 range. Sidelined investors and traders might consider buying the token if they can confirm that SOL has what it takes to keep the uptrend going.
A rally to $40 would start to materialize if Solana breaks and holds above $32 — the immediate hurdle. Meanwhile, dips below support at $30 will encourage profit-booking and possibly trigger a sell-off to $27 and the 21-day EMA reinforced support at $25.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.