The Solana price is gaining momentum today. The SOL token price surged by more than 50% in the past 24 hours as investors cheered its entry into Decentralized Finance (DeFi). The coin is now valued at more than $18 billion, which has propelled it into the 10th biggest coin in the world.
Why Solana jumped?
Solana is one of the fastest-growing Ethereum killers. The platform, which was started in 2017, uses proof-of-stake and proof-of-history technology. It helps developers build decentralized applications because of its smart contract technology.
This jump was not triggered by any news. Instead, investors cheered the infrastructural developments that will see it support DeFi projects. Recently, a $70 million crowdfund to support Mango Markets, a DeFi project on its network was launched.
Additionally, its developers have recently made some important upgrades in the ecosystem, including the Wormhole upgrade.
The Solana price has also jumped because of the overall performance of cryptocurrencies. During the weekend, Bitcoin price jumped to more than $48,000 while Ethereum rose to more than $3,300. There is usually a close correlation between Bitcoin and other cryptocurrencies.
Further, the volume of Solana being traded has increased, which has helped the SOL price. Data shows that SOL worth more than $1.45 billion was traded on Sunday. This was the highest number since June 22.
Solana price prediction
The four-hour chart shows that SOL price has been on a strong bullish momentum. It has risen by more than 200% from its lowest level in July. Along the way, it has moved above the key resistance level at$38, which was the lowest level in June.
It has also risen above the key 25-day and 50-day moving averages while the Relative Strength Index and MACD have continued rising.
Therefore, I suspect that the coin will have a major pullback on profit-taking. Historically, crypto prices tends to decline shortly after making a parabolic move.