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Solana (SOL) Might Be the Cryptocurrency to Consider Right Now
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What is happening
Solana has seen a significant growth of 20% in the last seven days. On Friday, the cryptocurrency exploded as much as 8.5%.
Since mid-April, it has traded in a wide range, finding support at $115 and meeting resistance at $188.
Source: CoinMarketCap
Solana recently broke above the 100 and 50 EMA resistance levels and maintained its position above the 50 EMA on the daily chart, indicating a solid market performance.
Cryptocurrency analyst Ali Martinez highlights that Solana is forming a W pattern, suggesting a potential bull run. The pattern indicates that the price has bottomed around $123 twice, positioning Solana for a major bounce towards the $174 level.
Solana ETF Coming Soon?
The upcoming launch of the first spot Ether exchange-traded funds (ETFs) will open the door to other exchange-traded crypto products, including a potential Solana-based ETF.
According to Eric Balchunas, senior ETF analyst at Bloomberg, the introduction of these Ether ETFs will likely lead to more Ether and SOL-based crypto ETFs. Balchunas expressed this expectation in a July 15 X post.
Price Analysis
A bullish triangle pattern is forming on the Solana chart, which historically indicates a potential breakout and significant price movement.
Ali Martinez identified the resistance range $162-$164 as a crucial barrier for Solana. If SOL breaks this range, the next target could be $175.
Source: Wings/X
At the moment, SOL is trading around $169. The support level of $163 is crucial in the coming days.
If it fails to hold the resistance level, it could drop to $141-143.
Increasing buying pressure following the break above the 100 EMA indicates investor optimism about Solana’s prospects. If Solana breaks the crucial resistance level around $170, it could lead to further gains.
About the author
Dan Burgin
Dan is a news editor and writer with 12 years of experience in finance and emerging technologies, with a strong focus on cryptocurrency. Covering a wide range of topics from fintech startups to artificial intelligence, he provides an in-depth overview of the current state of the cryptocurrency market, along with insights into its potential for future disruption.