Solana price is defying the bearish pressure that has engulfed the crypto market following a remarkable upswing in Bitcoin price to $30,000 earlier this week. The competitive smart contracts token has shown extreme resilience for almost a year after being battered by the FTX implosion saga in November which saw SOL drop to $8.
Since the FTX crash, investors have questioned whether the blockchain network has a future. However, the Solana team has continued to prove itself time and time again by pushing out new updates and launching new products.
According to a video shared by @Frankie_Candles, there is “still a lot going on behind the scenes in the Solana ecosystem. For instance, the total value locked (DeFi), which represents the dollar value of assets locked in the Solana DeFi smart contracts grew from $210 million in January 2023 to $331 in October, DefiLlama shows.
The real question, however, is whether Solana can perform as well as it did in the previous bull run where it tapped $260 in 2021.
Although Solana’s recovery has been lock-step since the beginning of the year, the last 24 hours have seen bulls make a comeback, propelling Solana to $25. Up 4.6% SOL is trading at $24.72 on Thursday backed by $709 million in trading volume and $10 billion in market capitalisation.
Solana bulls have this week, strengthened the bullish picture, first by upholding support at $25 and breaking above the upper dotted falling trendline. Traders also sought fresh exposure to SOL longs with the Moving Average Convergence Divergence (MACD) indicator sending a buy signal on the daily chart.
The call to buy SOL manifested with the MACD line in blue crossing above the red signal line. Note that the green histograms above the neutral area at 0.00 reinforce the bullish grip in addition to the momentum indicator’s generally upward-slopping trend.
A golden cross pattern on the same daily chart pattern shows that buyers have the upper hand. This pattern is formed when a short-term moving average flips above a long-term moving average, for instance, the 21-day EMA (red) and the 100-day EMA (blue) in Solana’s case.
Nevertheless, a daily close above $25 is required to validate the next climb targeting $30. Otherwise, traders may consider booking profits if SOL stays below $25 longer than expected which may trigger a sell-off back to $20.
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