Why Solana Price is up 5% at $38 – Should You Buy SOL Today?

Why Solana Price is up 5% at $38 - Should You Buy SOL Today?

Solana (SOL) has risen by 5% immediately relative to its 24-hour low, transferring from USD 36.82 early this morning to USD 38.67 as of writing. Its present worth additionally represents a 20% soar previously week, in response to CoinGecko, in addition to a 19% enhance within the final 14 days.

These strikes make SOL the tenth-finest performing cryptocurrency within the prime 100 previously week, behind such tokens as EVMOS, APE, XRD, ATOM, HNT, RPL and RVN. They additionally stand as one thing of a turnaround for the altcoin, which has had a troublesome 2022, with a fall of 85% for the reason that all-time excessive of USD 259.96 it set in November 2021.

But with Solana wanting ahead to a lot of essential developments, together with integrations with Helium and Hivemapper, it seems like imminent enlargement and evolution is pushing its native token upwards, and serving to it make up for misplaced floor.

Solana (SOL) Price on Road to Recovery

While SOL does stay down by 17% previously month, it is also up by round 35% within the final 90 days. Importantly, its technical indicators reveal a regathering of momentum, with its relative energy index pushing above 60 immediately and shutting in on 70.

It’s additionally price stating that SOL’s 30-day transferring common (in pink above) stays beneath its 200-day common (in blue). This signifies that it is nonetheless ready for a rally, and with its RSI taking pictures up now, such a rally could arrive quickly.

This suspicion is heightened by SOL’s fundamentals, which have been strengthened by growing adoption of Solana. In specific, it appears that evidently decentralized wi-fi infrastructure platform Helium is about emigrate to Solana, pending a vote by its neighborhood.

This vote closes in roughly eight and a half days, at which level the market could witness one other SOL rally, assuming a constructive final result. Yet this is not the one fascinating information on Solana’s horizon, with world map platform Hivemapper additionally launching on its blockchain within the coming months.

Such launches are extremely bullish for Solana. And coupled with information displaying a giant spike in Solana-based NFT transactions and quantity, they account for why SOL is having such a very good time proper now.

An Ethereum Killer?

Solana is at present the fifth-greatest layer-one blockchain by way of complete worth locked in, in response to DefiLlama. However, it had been on observe to change into even greater in late 2021, previous to the continued market downturn and a lot of unlucky technical points.

In reality, Solana has suffered at least 5 outages this yr, with block manufacturing stopping at numerous factors because of consensus failure and different bugs. Such incidents served to depress SOL’s worth considerably, with the coin going through substantial drops early in 2022 and between April and May.

And with Solana additionally witnessing a minor outage in early August, it is actually solely previously few weeks that it has been in a position to return to progress. This has been helped by the aforementioned integrations, in addition to a lot of community upgrades that ought to hopefully cut back the possibilities of future outages.

In reality, a ByBit report from late August concluded that Solana had witnessed robust progress in Q2 of this yr, largely on the again of upgrades that helped appeal to extra visitors in numerous areas of exercise, resembling NFTs and DAOs.

“Q2 noticed constant progress in developer exercise as every day lively packages broke above 1,100 for
the primary time on May 30. With the incoming Solana Summer Camp hackathon happening in
Q3, we are able to count on additional progress on this vertical,” wrote the report’s authors.

Such progress is extremely encouraging, since Solana might want to proceed updating its code and launching new apps if it is to proceed competing with Ethereum after this week’s Merge. However, with SOL rising by greater percentages than ETH previously week, there’s an opportunity it might do that.

Compiled by Coinbold

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