The Solana (SOL) price has pulled back after surging to an all-time high of $29.90 yesterday. It has fallen by more than 5% and is trading at $27, valuing the token at more than $7.47 billion. It is the 20th-biggest digital currency in the world.
What happened: Solana has been in an unstoppable bull-run recently. Its price has already risen by more than 120% from its lowest level this month, making it one of the best-performing digital currencies in the world. Year-to-date, it has surged by more than 1,850%.
The recent rally is mostly because of the overall rally of digital currencies. Indeed, currencies like Bitcoin, Ethereum, and Binance Coin are trading at their highest levels on record. In the past, digital currencies tend to move in sync with each other.
Another reason for the rally is the ongoing trend on airdrops. While the network is not making these airdrop projects, Serum, its decentralized protocol, was involved in the recent COPE drop. This drop distributed 2,000 tokens to people who participated in a hackathon by Solana and Serum. COPE then listed on Solana at $0.50 and rallied to a high of $5.43. This trend could continue in the near term, according to analysts.
Solana price has also rallied because of its role in the development community. Many developers view the network as a viable competitor to Ethereum, which has been well-known for its high costs. Indeed, Solana has completed more than 15 billion transactions at some of the lowest costs in the industry.
Solana price forecast
Turning to the four-hour chart, we see that the Solana price has been in an overall bullish trend recently. This has seen it form an ascending channel that is shown in green. Today, the price is along the lower line of this channel. Also, the price has managed to move below the 25-day and 15-day exponential moving averages while the RSI has also dropped.
At the same time, the SOL price has formed a head and shoulders pattern. Therefore, in my view, Solana could keep falling as bears target the next key support at $25. For this to happen, bears must move below the lower line of the ascending channel. Another key scenario is where bulls come to buy the dip and push the price to the upper side of the channel at $30.
SOL price chart
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