The bearish pressure that has kept $Solana price within a narrow range for so long appears to be waning. $SOL has produced a higher high on the three-day chart as a result of the recent increase in purchasing pressure from whales, indicating a change in momentum in favor of bulls.
The total value locked (TVL) of Solana (SOL) has increased to a new 2023 high of $338.82 million, igniting a newfound wave of optimism among Solana hodlers. $SOL’s TVL increased by almost 4.15% over the course of one day on October 2, reaching $338.82 million.
Solana 5-day price chart. Source: Trading View
The price of Solana is currently trading at $23.65 after achieving a significant three-day candlestick close above the $20-area 13-day, 25-day, and 30-day Exponential Moving Averages (EMA). In addition, this movement has resulted in a greater high in comparison to the $20.54 swing high on September 19.
While there is no denying that the price action in Solana is bullish, momentum indicators such as the Awesome Oscillator (AO) and Relative Strength Index (RSI) are also indicating signals of improvement. On the five-day chart, the RSI in particular has flipped over the 50 mean level, indicating that the strength of bulls is increasing. The AO, on the other hand, is still below the zero mean level, lagging behind the RSI. Investors should pay close attention to this index because a move over zero could set off a choppy upward movement in $SOL.
The $25 level should be the initial goal for $SOL traders. But from a long-term standpoint, the $25 range barrier is crucial; if it were to turn into a support floor on the five-day chart, it would trigger a 43% increase in Solana’s price to $37. This change would result in a 76% increase over the present value.
The bullish thesis will be refuted if there is an unexpected surge in selling pressure that causes $SOL to conclude its three-day candlestick pattern below the $17.5 support level. This would result in a lower low. In such a scenario, the price of Solana may drop by about 15% and fall to the $14 level.
Analysts on Twitter expressed a lot of enthusiasm after Solana registered a surprising rally all of a sudden.
Solana is the first L1 smart-contract blockchain to track energy emissions in real-time and anyone can check the network emissions at any moment thanks to Solana’s environmentally friendly, carbon-neutral technology.
Solana’s daily active addresses on average have been around 250k. Daily active addresses have been moving downward recently and Solana still faces stiff competition from other blockchains, especially Polygon.
Solana has frequently come under fire due to frequent outages and network congestion issues. However, despite experiencing moments of instability in the past, the network has significantly improved as a result of recent updates intended to address a number of these problems. Solana has experienced 100% uptime largely in 2023.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
