Solana (SOL) took the crypto world by storm this past weekend, experiencing a rally as its price rocketed to local highs. As of press time, SOL is trading at around $24.30 and has gained a staggering 15 percent in the last 24 hours. This increase in value has propelled altcoin Solana into the seventh-largest cryptocurrency by market cap, surpassing Dogecoin and Cardano. Here are the details…
The rise for Altcoin SOL attracted attention
Solana’s impressive rise has been nothing short of remarkable. In the process, it easily surpassed the critical resistance level of $23.2, outperforming major cryptocurrencies such as Bitcoin and Ethereum. The token then faced a significant test at the $24.50 resistance level and reached a high of $24.47 before entering a consolidation phase. Most importantly, Solana’s price maintained its position well above the 23.6% Fibonacci retracement level formed from the upward swing between the $18.75 low and $24.47 high.
Looking ahead, immediate resistance for SOL lies around $24.50, followed by a more significant hurdle at the psychologically important $25.00 mark, according to analyst Arman Shirinyan. A decisive break above this level could push the price towards the $27.20 resistance, with the next significant hurdle located near $28.80. Further gains could even push SOL towards the $30 level. However, if Solana fails to establish a support above $24.50 and $25.00, it could start a corrective move.
What are the levels to watch?
An initial support on the downside is near the $23.20 level along with the corresponding trend line. The first major support is at approximately $21.50, corresponding to the 50% Fibonacci retracement level calculated from the upward move from the low of $18.75 to the high of $24.47. If there is a close below the $21.50 support, there is a potential risk of a decline towards the $20.50 support level or even the $20.00 level in the near term.
DeFi TVL grew strong
As Solana’s price continues to rise, its presence in the decentralized finance (DeFi) sector has also witnessed significant growth. Total value locked (TVL) on the Solana network reached $338.82 million as of October 2, reaching its highest point in 2023. This represents a 24-hour increase of approximately 4.15% from $324.64 million in a single day. Throughout 2023, Solana’s TVL has grown significantly, up an impressive 38% from the beginning of the year when it stood at $210.47 million. This significant expansion in the DeFi space underscores Solana’s growing importance and utility within the broader cryptocurrency ecosystem.
Moreover, this increase crossed the 200 Exponential Moving Average (EMA), an important resistance level whose existence is closely watched by traders. Especially the fact that Solana has been heavily short-sold lately has made this price increase an indicator of a short squeeze. The cryptocurrency market is abuzz with activity, largely influenced by Bitcoin’s recent rise to $28,000. This upward trend has also spread to altcoins such as Solana, whose trading volume has been steadily increasing. This indicates strong buying interest and further upside potential in the near term.
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