Solana Price Surge: A Rare Pattern Emerges
Solana’s price has increased by over 35% from its June low, forming a rare pattern that signals potential profits in the coming weeks. This significant surge has caught the attention of investors and traders alike, with many wondering what’s behind this sudden growth. As of August 12, Solana was trading at $176.5, a notable increase of over 9% and 40% in the last 30 days compared to its year-to-date low.
The market capitalization of the token stood at $95.1 billion at the time of writing, a testament to the growing interest in the Solana network. Several factors contribute to this upward trend, including recent purchases of Solana tokens by public companies such as Bit Mining, Upexi, and Defi Development Corp. These companies are likely invested in receiving a piece of the blockchain reward, which has sparked a wave of interest in the token.
Technical Indicators Point to Further Gains
Solana’s technical data also suggests a strong potential for further growth. The daily active addresses on the Solana network have increased by over 16% in the last 24 hours, indicating a growing commitment from users. This surge in activity often signals a bullish trend, which could propel the price even higher in the coming weeks. Additionally, the token has formed a golden cross in the daily chart, a pattern typically seen as a bullish signal in the crypto trade community.
A similar pattern was observed last year in October, which led to a 50% increase in Solana’s price over the next three months. If history repeats itself, this time around, the price could rally to around $240. Moreover, the token has also printed a cup and handle pattern, with its base at $126.4 and the breakout resistance at $187.74. The distance between the upper and lower borders of the cup is approximately 48%, which could lead to a potential rally towards $248.
A Growing Network and Tokenization Efforts
Solana seems to be building a growing network for the actual tokenization of assets, with a pioneering agreement between the Solana Foundation and R3 aimed at integrating the Solana blockchain for asset tokenization. This partnership could lead to increased adoption and use cases for the token, further driving up its price. As the network continues to expand and mature, it’s likely that Solana’s price will follow suit, making it an exciting time for investors and traders.
However, it’s essential to note that this optimistic outlook would be invalidated if the price falls below the next support area, which is around $156. This level marks the lower end of the handle, and a drop below it could signal a reversal of the current trend. As with any investment, it’s crucial to do your own research and consider multiple factors before making a decision.
