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Amidst these encouraging sentiments including SOL price recovery, analysts are worried about the coin’s future.
Solana (SOL) has garnered intense attention after its token price ratio against the second-largest cryptocurrency by market cap Ethereum (ETH) attained a new high. During the recent crypto market downturn, some digital assets saw more losses than others. Unfortunately, some of the supposed top-ranking cryptocurrencies featured in the second group saw more losses than their counterparts.
Solana Recovers by Over 36%
On Tuesday, the SOL/ETH ratio hit a record 0.0595, indicating that Solana defied the raging market sell-off that hit the crypto landscape. In a plot twist, ETH price fell by 22% which is relatively lower than the 36% dip that SOL recorded. However, in a matter of a few hours, Solana has recovered significantly compared to Ethereum.
The token went from its local low of $110 to trade at its current level of $151.79. This corresponds with more than a 36% increase from that previous low. On the other hand, Ethereum has barely recorded a 15% price recovery. At the time of this writing, ETH traded at $2,503.25, still a distance from its levels a few weeks ago when the United States Securities and Exchange Commission (SEC) approved spot Ethereum ETFs.
It is worth noting that the surge in SOL price coincides with the season of “Solana memecoin mania”. This phenomenon is triggered by the availability of viral content and increasing speculations in the market. In the long run, it has contributed to a rising demand for Rust engineers. Rust is the programming language behind Solana.
Several crypto job boards pointed out the numerous openings for Rust developers on different protocols. This is likely due to the growing preference of Rust for blockchain development and the increasing popularity of Solana-based memecoin.
Solana to Face Price Resistance
Amidst these encouraging sentiments including SOL price recovery, analysts are worried about the coin’s future.
These analysts believe that Solana is likely to face potential resistance. The next resistance level for the token is capped at $155 and at this level, a hurdle is inevitable. Solana could either move to bag further gains or face more decline. For now, it looks like the token is in its recovery phase trading above its 100-hourly simple moving average atop a key bearish trend line.
Despite this outlook, investors would have to look out for key resistance zones at $155 and $166 which could pose challenges. Once SOL can successfully breach these levels, it is headed for a more sustained rally.
About a week ago, the Solana ecosystem recorded high performance from Decentralized Applications (DApps) resident on its protocol. This includes Raydium, Pump.Fun, and Jito with Raydium leading the group with a July trading volume of $30 billion. It is definitely not hard to tell that the Solana landscape is one of the highest-performing at this time.
