Solana price made a strong bullish breakout as investors continued buying the dip. The SOL token surged to $46.23, which was the highest level since May this year. The coin has jumped by over 70% from its YTD low as the volume of its DeFi platforms has rebounded. Solana has a market cap of $15 billion making it the 9th biggest coin in the world.
Solana has emerged as one of the best-performing cryptocurrencies in the past few months. This rebound is mostly because investors believe Solana is the best alternative to Ethereum. Besides, Solana is known for its significantly fast speeds and low transaction costs. The developers are also working to reduce instances of outages.
Solana price has done well as data show that activity in its DeFi protocols is rising. For example, the volume of Serum, Raydium, Whirlpool, Orca, and Lifinity has jumped by more than 50% in the past 24 hours. According to DeFi Llama, Solana’s total value locked (TVL) has risen by 115 in the past seven days to over $2.8 billion.
Solana’s NFT collections like Primates, Okay Bears, Degen Degen, and Art of Mob have also done well in the past few days. Solana price has also risen because of the strong performance of Ethereum. Ether has rallied above $1,500, which is significantly higher than its lowest level this year.
Solana price forecast
The four-hour chart shows that the SOL price has been in a strong bullish trend in the past few weeks. The coin has managed to move above the important resistance points at $39.74 and $43.02, which were the lowest points on June 8th and June 22nd of this year.
The coin has jumped above the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has moved slightly above the overbought level. In addition, the Average Directional Index (ADX), which is a measure of a trend’s strength, has also rallied to 33.
Therefore, it seems like the coin has momentum, meaning that the bullish trend will continue. If this happens, the next fundamental watch level will be $50. A drop below the support at $43 will invalidate the bullish view.