Ethereum Layer-1 competitor Solana maintains its inexorable price ascent, surpassing $47 with an additional 7% gain as of press time.
The recent surge in the price of SOL is attributable mainly to the news that BlackRock has submitted an application for a spot Ethereum ETF.
Solana Price Rally
The enormous Solana rally began a few weeks ago, and the SOL price has increased by over 113% in the past month.
Due to the advance, the altcoin has surpassed the $46 resistance level that has stood for the past 15 months.
Despite the fact that the cryptocurrency is presently trading above this threshold, confirmation of sustained momentum would require a daily candlestick closure followed by an examination of this price as a support level.
Nevertheless, should the rally attain an unsustainable magnitude and investors choose to safeguard their profits, Solana’s price might experience a possible decline.
A breach of the support level at $46 could present an opportunity for a retracement from $36; however, a closing below this threshold could invalidate the bullish sentiment and potentially result in SOL reaching $31.
Why SOL May Rise Above $50?
Jacob Canfield, a renowned cryptocurrency speculator, has stated the reason he anticipates the Solana price increase to continue in the future.
“I think that @Solana is going to continue to be one of the biggest movers during this current bull market cycle,” he said.
Additionally, he outlined several prerequisites under which the Solana price increase could persist. He briefly mentions the following.
SOL.D – Solana Dominance Even at the market’s peak, Solana dominance failed to surpass 3%.
SOLBTC – Currently undergoing a breakout from a weekly resistance level, signaling the potential for a parabolic rally.
SOLETH – Solana has recently breached a weekly resistance level, indicating the possibility of a parabolic rally against Ethereum.
ETH.D – Ethereum Dominance. Presently experiencing a breakdown from a long-term trendline and losing the 200-week moving average.
Presently valued at 17%, SOL could emerge as a significant victor in this market cycle if Ethereum falls to levels not seen since 2019-2020 and Solana maintains its current trend against the cryptocurrency.
SEC Accepts FTX Revival
On Thursday, the price of Solana (SOL) increased significantly, propelled by an all-around positive outlook on the cryptocurrency sector and confidence in the possible resurgence of the insolvent exchange FTX, an initial backer of the token.
In his remarks regarding the FTX revival, Gary Gensler, the US Securities and Exchange Commission (SEC) Chairman, underscored the criticality of adhering to legal regulations throughout the revival procedure.
FTX has been methodically selling every activated SOL from its wallet for the past two weeks.
Notwithstanding this, the Solana rally has persisted.