Solana (SOL), the Layer-1 competitor of Ethereum, has continued its unstoppable price rally, surging over 6% in the past 24 hours to surpass $47. This recent price rally in SOL has been fueled by the news of BlackRock’s application for a spot Ethereum ETF.
Price Rally in Solana
Solana’s major rally started a few weeks ago, and the price of SOL has increased by over 113% in the past 30 days. This rise has pushed the altcoin above the $46 level, which was defined as a 15-month resistance level. Currently, the popular altcoin is trading above this level, but for the rally to be sustainable, there needs to be a daily candlestick closing above $46, and the price should test this level as support.
If the rally reaches an unsustainable level and investors start taking profits, the price of Solana may encounter a drop. Losing the $46 support could lead to a correction towards $36, and a candlestick closing below this level could potentially pull SOL down to $31.
SOL Price Could Surpass $50
Prominent crypto analyst and trader Jacob Canfield expects the price rally in Solana to continue, making it a significant performer during this bull market cycle. Canfield stated, “I believe Solana will continue to be one of the major performers during this current bull market cycle.” He also highlighted several conditions for the possibility of the Solana price rally to continue:
Solana dominance (SOL.D) has not exceeded 3% even at the market peak. The SOL/BTC trading pair has recently experienced a breakout from the weekly resistance level, indicating the potential for a parabolic rally. The SOL/ETH trading pair shows that Solana recently surpassed the weekly resistance level, suggesting the possibility of a parabolic rally against Ethereum. Ethereum dominance (ETH.D) is currently breaking the long-term trend line and losing the 200-week moving average.
If Solana continues to gain market share against Ethereum (ETH.D) and ETH.D drops to the levels of 2019-2020, SOL could emerge as a significant winner in this market cycle.
Meanwhile, the price increase in SOL has regained momentum due to the general upward trend in the cryptocurrency market and positive expectations regarding the potential reopening of the bankrupt cryptocurrency exchange FTX.
Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), emphasized the importance of conducting the reopening process of FTX within the legal framework. Despite FTX systematically selling all unlocked SOL in its wallet over the past two weeks, the Solana rally has continued.
