After weeks of stalling, the price of Solana ($SOL) has finally made a critical move that could propel it to the $300 level as late buyers have shown up to scoop up this cryptocurrency during the latest pullback.
The price of the native token of this layer-one blockchain appears to have bottomed at $175 per token as market participants pulled a bear trap that temporarily invalidated the bull flag pattern that had been forming since the November peak.
However, the price has risen to the $220 level since then and has already broke above the upper bound of the flag – a bullish signal that could precede a sustained rally over the coming weeks for $SOL.
On the day of the breakout, the price of $SOL rose by 4.8% to $217.93 and trading volumes surged compared to prior days. Meanwhile, in the past 24 hours, volumes have seen an 8% increase at $3 billion.
The number of active addresses on the Solana network has started to rise as well, indicating that investors are once again adding the token to their wallets. Back in November, this metric peaked at 6.64 million while it now sits at 4.29 million according to on-chain data from The Block.
Moreover, the number of active addresses that had 0 SOL tokens has decreased sharply from around 3.5 million a couple of days ago to 322,000. This means that retail investors are piling on $SOL after the recent breakout.
The popular SolanaFloor account on X, which tracks the most relevant developments concerning this blockchain, recently pointed that the Solana network surpassed the trading volumes of all decentralized exchanges (DEXs) that work on the Ethereum and Base blockchains.
In addition, the leading DEX in the Solana blockchain – Raydium – surpassed Uniswap’s 24-hour volumes on January 5 with $2.29 billion despite the fact that it operates solely on Solana while its competitor processes transactions for over 24 different blockchains.
Bull Flag Pattern Breakout Could Push $SOL to New All-Time High
Although it took a while, the bull flag pattern has been partially confirmed by a break of the upper bound of the formation that was accompanied by high trading volumes.
However, full confirmation that this could be the beginning of a new bullish cycle for $SOL would come if the price rises above $240 as it would result in a break of the latest lower high the token booked in mid-December.
The Relative Strength Index (RSI) has also been surging rapidly, indicating that positive momentum is picking up its pace. The oscillator has already crossed above its signal line and has an ample runway to keep surging in the following days.
In addition, the MACD strategy has sent a long-entry signal on January 1 that has already delivered gains of 6.4% in just five days.
Moving forward, a pullback could push $SOL back to $200 temporarily. However, as long as that support holds, there is a high chance that the price will likely keep rallying until it reaches $260 first and then $300.
This Layer-Two Solana Protocol Has Raised $8.7M in Its Presale in Just a Few Days
Solaxy, a layer-two Solana scaling solution, is experiencing some positive momentum as well in its presale event as investors have scooped up $8.7 million worth of its utility token $SOLX in the past few days.
The rapid expansion of the Solana ecosystem has caused congestion issues on the mainnet on various occasions.
https://x.com/SOLAXYTOKEN/status/1875142151732105682Solaxy has been designed to help the network scale and process transactions more efficiently through a safe mechanism that involves bundling these requests offline to alleviate the mainnet’s burden.
The success of L2 scaling solutions on the Ethereum and Bitcoin networks has paved the way for Solaxy. In addition, early buyers of its native token $SOLX benefit from high staking rewards that currently stand at 400% along with the potential for significant price appreciation once the token is listed on exchanges.
This project has been audited by Coinsult to ensure that its coding contains no errors or weaknesses that could be exploited by bad actors. At its presale price of $0.001592, which will only be available for the next 22 hours, $SOLX is a rare gem that investors should not miss considering the rapid rate at which Solana is advancing to become the next Ethereum.
To buy $SOLX, go to the Solaxy website and connect your wallet to swap either ETH or USDT tokens. Investors who don’t own any crypto at the moment can still buy it by using a bank card and downloading the Best Wallet to store their assets safely.
The wait is over for the Solana network to reach new heights in terms of adoption, ecosystem growth, and gains. The Solaxy era is beginning and you can be a part of it by buying $SOLX at this attractive presale price.
The post Solana Sees Huge Bounce from Weekly Bottom – Is SOL Starting Its Move to $300? appeared first on Cryptonews.
