The Solana price surged during the weekend as demand for alternative currencies surged. The SOL price rose by more than 56% from its lowest level on March 26. It reached an all-time high of $19.45, which is slightly below the psychological level of $20.
What happened: Solana, commonly known as the Ethereum-killer, has done well in the past few months. It’s price has surged by more than 1,562% from the lowest level since December. This has brought its market cap to more than $4.85 billion, making it the 22nd biggest digital currency in the world.
The rally was mostly because of rising demand for alternatives to Ethereum, whose network has become slow and expensive. Indeed, Solana’s network can process up to 50,000 transactions per second. Ethereum aims to reach 100,000 in the next 2 years after the ETH 2.0 upgrade completes.
This price action was also because of a $40 million boost for Solana from OKEx and MXC.
Solana price prediction
Looking at the four-hour chart, we see that the Solana price reached an all-time high of $17.98 in February this year. Since then, the price dropped to $11.34. It has been inside the channel at $11.9 and $16.58. During the weekend, it moved above the channel and is currently along the previous high. It has also moved above the 25-day and 15-day moving averages.
Also, it has moved above the standard pivot point. Therefore, in my view, the price will keep rising as bulls target the second resistance level at $23.50. However, a drop below $17 will invalidate this trend.
SOL price chart
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Crispus on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.