4 months ago
35 ARTICLE AD
The rising adoption of Web 3.0 projects and meme coins on the Solana ecosystem has helped bolster the SOL’s bullish outlook.
Solana (SOL), a top-tier layer one (L1) network with a vibrant web3 ecosystem, has been signaling a fresh bullish trend after being trapped in a consolidation mode in the past four months. The large-cap altcoin, with a fully diluted valuation of about $102 billion and a daily average traded volume of around $3.7 billion, surged more than 22 percent in the past two weeks to hover around $176.54 on Wednesday.
From a technical standpoint, Solana price has been retesting the recent breakout from a falling logarithmic daily trend.
If the SOL price consistently closes above this resistance/support level in the coming weeks, the altcoin will be well-positioned to retest its all-time high soon.
Furthermore, the altcoin consistently closed above the daily 50 and 200 Moving Averages (MA) in the past week. The ultimate bullish signal for SOL will be a rally above 70 level for the daily Relative Strength Index (RSI), which currently hovers around 63 percent.
$SOL Update: Probably one of the strongest chart now. Breakout and retest done✅
Bags packed, final target around $1000$🚀🚀🚀 pic.twitter.com/awUhbFlRbL
— CryptoBoss (@CryptoBoss1984) July 24, 2024
Solana Benefits for Spot Ether ETFs Approval
The approval of spot Ethereum ETFs is an indicator that the US SEC has changed its stance on most altcoins, which were previously believed to have violated securities laws.
The final approval of spot Ethereum ETFs in the United States has increased the chances of similar products for Solana. According to Franklin Templeton Digital Assets’ researchers, the Solana network has demonstrated significant maturity and potential besides Bitcoin and Ethereum.
“Solana has shown major adoption and continues to mature, overcoming technological growing pains and highlighting the potential of high-throughput, monolithic architectures,” the researchers noted.
Already, VanEck has filed for a spot Solana ETF with the US SEC, with its final ruling to be made after the upcoming US general election. The growing demand for Solana fueled by both retail traders and institutional investors will eventually lead to the final approval of spot Solana ETF.
Growing Demand
Following the notable growth and speculation of a possible spot Solana ETF soon, on-chain data shows whales scooped more than 238K SOL, worth over $41 million from Binance in the last two days.
In the past 2 days, 2 whales withdrew 238,893 $SOL ($41.4M) from #Binance and staked it!https://t.co/A6AKhPZvZnhttps://t.co/e0ysroHG1x pic.twitter.com/vurGILr9EU
— Lookonchain (@lookonchain) July 24, 2024
The Solana bullish outlook has significantly been driven by its web3 ecosystem and meme coins. Remarkably, the Solana network surpassed the Ethereum ecosystem for the first time in 30 days trailing DEX volume.
Notably, the Raydium platform is the leading DEX on the Solana network with about $1.18 billion in total value locked. The Solana meme coins have a market cap of about $9.48 billion and a daily average trading volume of around $2 billion. Hundreds of meme coins have emerged in the past few months on the Solana network led by dogwifhat (WIF), Bonk (BONK), Popcat (POPCAT), and Cat in a dogs world (MEW), among others.
