As the cryptocurrency market continues to trade sideways, the decentralized finance platform Solana (SOL) becomes the bright spot of the sector.
Specifically, SOL recorded significant buying pressure in the past 24 hours. At the time of writing, the altcoin’s market cap is $8.7 billion, reflecting inflows of $1.02 billion over the past 24 hours.
— Solana One Day Market Cap Chart | Source: CoinMarketCap
Buying pressure also supported the asset’s price trajectory, comfortably sustaining above the $20 support. Currently, SOL is valued at $21.71, with a daily increase of nearly 4%. On the weekly chart, the price is up more than 17%.
— 4-hour SOL price chart | Source: Tradingview
Why is Solana pumping?
While Solana generally moves in tandem with the market, the recent bull run lacks a specific catalyst. It’s worth noting, however, that the asset’s returns are in line with the network’s key partnerships.
Prominent among them was the announcement of a partnership between Coca-Cola in Serbia and the Solana NFT platform SolSea to deliver NFT during a musical event. Under the agreement, the beverage company will distribute 100 limited-edition hoodies with NFTs to selected participants.
Meanwhile, talk about Solana on social media increased with optimism. On Reddit, there was a notable spike in mentions over the past week, as reported by on-chain analytics firm Santiment. Considering the influence of Reddit traders on market volatility, it can be seen that they played an important role in driving Solana’s recent price action.
Interestingly, Solana is facing delisting from several US exchanges in June due to a lawsuit by the US Securities and Exchange Commission (SEC) alleging SOL is unregistered security. sign. The Solana Foundation has expressed its commitment to oppose this allegation. Regardless of the outcome, however, SOL seems poised for the long battle ahead.
In addition, following the difficulties Solana faced in the aftermath of the FTX disaster, the remarkable recovery background shows a promising path for investors. The network’s technology facilitates fast, reliable, and scalable decentralized applications and cryptocurrency services, which still seem to maintain the project’s appeal in the market, paving the way for further potential benefits.
SOL Technical analysis
In terms of price, technical analysis on TradingView maintains a bullish outlook for SOL. The one-day sentiment summary shows a “strong buy” sentiment rating of 16. The moving averages are also “strongly bought” at 14, while the oscillators remain neutral at 8.
However, despite Solana expressing an upbeat sentiment, a report reveals the asset could be heading for downside risk in the coming months. Specifically, the self-learning machine algorithm used by the crypto analytics platform CoinCodex predicted the price of SOL at $16.18 on the last day of 2023.
