Solana (SOL) the sixth-largest crypto token by market capitalization dipped slightly on Tuesday after a stellar rise over the past month. However, the declines suggest that the token is likely gearing up towards all-time highs.
SOL’s price dropped as much as 7% to $126.94, and was currently trading at $133.26. It was also nearly 50% of what it was in November when it touched a record high of $258.96. Still, the token has risen 38 percent since hitting seven-month lows in March making it one of the best-performing altcoins in the past month.
SOL Technical Indicators run bullish
SOL’s Bitcoin (BTC) pair, according to popular crypto analyst @SmartContracter, is still in the midst of an extended W pattern recovery. The token is projected to continue to grow, albeit at a slower pace, to new highs in 2022.
The token is likely to see sharp consolidation after this rise but will then challenge its all-time highs.
After this 5 wave rise I think it’ll have a fairly significant 20%+ pullback before it runs for ATH
-SmartContracter
Given that the token has struggled to consistently remain above $135, technical indicators for SOL’s USD pair imply that $135 is the next resistance level. A concrete breach is likely to suggest much more gains.
In its mid-March recovery, SOL had shown a Morningstar pattern.
Institutional trading, PoS interest surge Solana
The majority of the SOL’s recent surge was fueled by increased institutional interest. The token is included in an exchange-traded product offered by European asset manager CoinShares, and it accounts for about a quarter of the weightage in a new fund launched by Grayscale.
Ethereum’s impending switch to a proof-of-stake (PoS) token has boosted interest in the medium, supporting SOL and its contemporaries such as Cardano(ADA) and Algorand (ALGO). The largest Proof-of-Stake token is SOL.
After South Korea’s Krafton, producer of the wildly popular PUBG videogame, teamed with Solana Labs, the promise of blockchain gaming on Solana boosted the token’s value.