- Solana (SOLUSD) up 50%
- Increased Solana adoption
- Solana pay impact
Investors are increasingly pouring into the cryptocurrency market, looking to take advantage of highly battered assets. A bounce-back that started last month is gathering steam amid renewed demand for riskier assets as the focus shifts toward speculative assets.
Solana technical analysis
Solana is one of the cryptocurrencies attracting strong interest and investment dollars if a 50% plus rally over the past month is anything to go by. The cryptocurrency continues to outperform the overall market, buoyed by a strong developer and investor interest. SOLUSD has turned bullish, as depicted by technical indicators.
SOLUSD remains well supported for further upside action after powering and finding support above the $100 psychological level. The Relative Strength Index has already risen to highs of 74, affirming the strong upward momentum likely to support further price appreciation.
A rally followed by a daily close above the $120 level has left SOLUSD on the cusp of making a run for the $150 level with bulls in control. The crypto rising above the 200-day moving average affirms the emerging uptrend after months of sell-offs.
On the flip side, a pullback followed by a daily close below the $120 level could leave SOLUSD susceptible to further losses. A pullback to the $100 level could be on the cards as part of the consolidation lower.
However, all indication is that SOLUSD will continue to re-rate higher as affirmed by the Relative Strength Index and the 200-day moving average.
In addition to technical indicators affirming the uptrend, the SOLUSD rally is being supported by solid underlying fundamentals. Top on the list is the confirmation that more investors and people are pouring into the Solana blockchain.
Cryptocurrency exchange Coinbase Global has already added support for the cryptocurrency, affirming strengthened investor interest. OpenSea is another platform adding to the good news by confirming it will start carrying Solana-based non-fungible tokens (NFT).
OpenSea adding support is big news as it is the largest NFT marketplace with over $3 billion in transactions a month. Solana is increasingly becoming a big player around NFTs. Its robust NFT ecosystem has already attracted big projects such as Magic Eden, which registers more than $500 million in total sales volume.
Solana blockchain edge
Additionally, the Solana blockchain elicits strong interest from developers as it can process 50,000 transactions per second. Unlike Ethereum, it does not need any upgrade to boost speed and scalability.
Blockchain’s competitive edge is the driving force as Solana pivots into the real world of fintech. Solana Pay is the new fintech project that strengthens Solana’s edge in decentralized finance by making it easy for people to use their cryptocurrency holdings for everyday financial transactions.
Solana Pay allows developers to come up with crypto-based payment infrastructure running on the Solana native token SOL. Increased use of the Sol token should result in its price appreciating significantly.
Increased adoption of the Solana blockchain is one factor that should continue to support significant price appreciation. As more developers and people use the blockchain, demand for SOL coins should increase, leading to price appreciation.
In addition, Solana continues to attract strong interest from investors and developers because of its breakneck speeds and low transaction fees on its blockchain. Conversely, it is becoming an ideal play for gaining exposure in the burgeoning sector. Its attractive valuation also continues to attract investors who missed out on the initial leg to all-time highs.