SOL, the native cryptocurrency of the Solana network, is on a bullish path fueled by positive market trends. As Bitcoin breaks the $65,000 mark, Solana and other major altcoins display signs of renewed recovery after the June Correction. On Tuesday, during U.S. trading hours, the Solana price reached a five-week peak of $163.8, setting the stage for further gains amidst ETF speculation and increasing DEX volume.
Solana Price Plots Major Rally Amid Triangle Formation
Amid the current market recovery, the Solana price showcased a local bottom formation at $122 in the daily chart. This horizontal support intact since March 2024 coincides closely with the 23.6% Fibonacci retracement level.
This healthy correction bolstered buyers to replenish bullish momentum and uplift the assets by 32% to trade at $160. Consecutively, the Solana coin market cap jumped to $74.6 Billion.
The bullish reversal shifted the flattish trend of fast-moving EMAs 20D and 50D into an uptick indicating an active buying force turning to market.
Moreover, a recent observation from Ryan Connor shows that Solana’s DEX volume is on the verge of surpassing Ethereum’s, a phenomenon often referred to as a “flippening.”
The attached chart shows the rolling 30-day DEX volume for Ethereum (ETH) and Solana (SOL), highlighting Solana’s consistent increase in volume as it narrows the gap with Ethereum. Historically, Ethereum has dominated the DEX market, the only other chain to surpass was Binance Smart Chain (BSC) back in 2021.
Additionally, Solana is knocking the door of 40% DEX volume market share on a daily basis pic.twitter.com/yYizqbGSSx
— Ryan Connor 🟪 (@_ryanrconnor) July 15, 2024
The second chart depicts the t1d (1-day) rolling DEX volume market share for Solana, which has been approaching the 40% mark.
However, the daily chart shows that the Solana price is poised for only a 3.5% jump before facing major resistance from the triangle pattern. Over the past four months, the two converging trendlines of the triangle have confined the SOL price in a sideways trend.
Thus, an upside breakout from the overhead trendline is needed for the SOL coin to escape the consolidation trend. The ADX indicator uptick at 18% the currency recovery is young and has sufficient momentum to drive a prolonged bull run.
The post-breakout rally could extend the Solana price prediction target to $188 resistance, followed by $210.
Key Takeaway
Solana’s impressive growth in DEX volume is a testament to its robust infrastructure and increasing adoption. In addition, the SOL price analysis shows a better position to escape current consolidation with the triangle pattern breakout. As the spot Ethereum ETF is anticipated to launch in late July, the SOL ETF is the next best deal for crypto investors.
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Frequently Asked Questions
DEX volume refers to the total trading volume that occurs on decentralized exchanges (DEXs).
Considering the Solana price has already witnessed a significant rally in July, a further recovery to $168 or $188 is possible before the buyers may need a pullback to regain strength.
An ETF allows traditional investors to gain exposure to Solana without directly buying and storing the cryptocurrency. This increased accessibility can attract a broader range of investors, including institutional investors
