Solana’s native token, SOL, is on the brink of a breakout, signaling potential price increases in the short term. According to crypto analyst Altcoin Buzz on X (formerly Twitter), many investors are overlooking the value of SOL, which he describes as a “gem” in the crypto world.
SOL Set to Overcome Bearish Market Conditions
The analyst believes that once SOL navigates through the current bearish phase in the crypto market, it could skyrocket into an uptrend. The token’s momentum has recently been dampened by the sharp declines in leading cryptocurrencies like Bitcoin (BTC) and Ether (ETH).
As of now, SOL is trading at $144.35, reflecting a nearly 2% increase in the past 24 hours. If SOL can maintain its position above this level, there is a strong possibility of a continued uptrend in the short term. The digital asset’s trading volume has risen by 12.54%, reaching $3.1 billion. With a market cap of $67.5 billion, Solana is currently the fifth most valuable cryptocurrency.
Solana’s Growing Popularity
Solana’s rising popularity is primarily driven by the reliable returns offered by its network. Participants in the Solana ecosystem report daily returns of around 1%, a figure that outpaces those offered by Ethereum and other competitors.
Technical Analysis: Consolidation and Sideways Movement
The TradingView chart below illustrates that SOL’s trading volume isn’t yet high enough to trigger a strong bullish uptrend. The price has been consolidating between $188 and $120, leading to a sideways trend dominating the market.
The Relative Strength Index (RSI) for SOL currently reads 44.14, indicating that bears are still in control. If the bulls fail to gain momentum soon, there is a significant risk of a price decline. The slow gradient of the RSI line suggests that any movement is likely to be gradual.
