As a seasoned analyst with years of experience navigating the cryptocurrency market, I find Solana’s (SOL) latest surge intriguing. The fourth consecutive bullish session, coupled with increased trading volume and a jump in memecoin prices, indicates a resurgence of interest in the Solana ecosystem.
On October 14th, I observed an uptick in the value of my Solana (SOL) investment, surpassing the $150 mark and registering a 4% growth over the past day. This increase comes as part of a broader market recovery.
On October 14th, Solana (SOL) continued its bullish trend for the fourth consecutive day in the daily timeframe, recording a 13% increase from its low of $135.43 on October 10th, reaching an intraday peak of $153.31. This data was derived from CryptoMoon Markets Pro and TradingView.
As the price of SOL rises, there’s been an uptick in trading, causing its daily trading volume to soar by 77% to reach approximately $1.9 billion. With a market cap of $71.6 billion, SOL maintains its place among the top five largest cryptocurrencies by market capitalization.
Let us look at the factors driving SOL price up today.
Solana memecoins are flashing green
On October 14th, Solana’s surge aligns with a persistent price increase among its associated meme coins. A majority of these coins have recorded over ten percent growth in the past week, as illustrated in the graph below.
As an analyst, I’ve noticed a significant surge in the cryptocurrency market. For example, Dogewifhat (WIF), currently the top Solana memecoin by market capitalization, has experienced a rally of approximately 1.4% within the last 24 hours and has seen a growth of 5.7% over the past seven days. Remarkably, Bonk (BONK) and Cat in a Dogs World (MEW) have also seen impressive gains, with Bonk climbing by 3.8% and Cat in a Dogs World surging by 10%, respectively, within the same timeframe. The real standout, however, is Book of Meme (BOME), which has skyrocketed by an astounding 27%.
The increase in memecoin prices coincides with an upsurge in on-chain activity within the Solana network, as indicated by the data from the Dune dashboard pump.fun. It appears that the recent growth in SOL price was triggered by a significant spike in transactions on the network.
As an analyst, I’ve observed a significant increase in daily transactions on the Solana blockchain. Specifically, transactions rose from approximately 13,351 on October 8th to around 19,283 by October 14th. This indicates a notable surge in network activity over that period.
As a researcher studying the Solana network, I’ve noticed an uptick in transaction volumes, suggesting heightened network activity and more frequent user engagement with the platform. This increased interaction translates into heavier network usage and potentially higher earnings for the network.
On October 13th, DefiLlama’s data shows a notable rise in Solana’s daily income, which was around $745,570 compared to about $136,330 in the middle of September, marking a significant jump.
Additionally, the graph presented indicates that the Total Value Locked (TVL) of Solana has been gradually increasing throughout October. Specifically, it grew by approximately 18%, escalating from $5.06 billion on October 3rd to $6 billion as of the time this information was published.
An increase in on-chain transactions, network earnings, and Total Value Locked (TVL) on the Solana blockchain suggests more active user engagement, rising demand for SOL tokens, and potentially boosting their market price.
SOL’s market structure hints at a return to $200
The daily chart illustrates that SOL‘s price movement has formed an ascending triangle pattern, a bullish technical indicator.
During an upward trend, ascending triangles function as a bullish continuation pattern. These formations are resolved when the price surpasses the upper trendline, potentially rising by a distance equivalent to or greater than the gap between the upper and lower trendlines.
It seems that SOL might follow a pattern resembling a breakout around October. At the moment, its value stands at $152, representing a 6.5% difference from the current level of the horizontal trendline, which is located at $162.
Should SOL successfully close its daily candlestick significantly above the current resistance point, it could potentially advance towards the bullish objective of its existing chart pattern, which lies approximately 30.5% higher compared to its current pricing.
In simpler terms, the price range from around $144 to $152 is acting as strong resistance for potential sellers, while these same levels are proving to be solid support for buyers. Additionally, the 50-day, 100-day, and 200-day exponential moving averages (EMAs) are currently positioned at these levels.
In simpler terms, the Relative Strength Index (RSI) is increasing towards 70, suggesting that buyers are currently holding more power in the market.
On the negative side, falling below $150 might indicate that buyers are struggling to continue the upward momentum. In such a case, Solana (SOL) could potentially drop out of its current demand zone between $144 and $152, eventually reaching the lower trending line at around $135. This would weaken the short-term bullish prediction.
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2024-10-14 12:44