Here’s why SOL will trade above $50 soon

Solana (SOL/USD) price rebounded on Thursday as investors reflected on the latest US consumer inflation data. It rose to $45.07, which was the highest point since July 30th of this year. This price is about 71% above the lowest level in June this year, bringing the total market cap to over $15.40 billion.

Cryptocurrencies rebound

Solana is a leading and often controversial blockchain project that seeks to become the best platform for developers to build decentralised applications (dApps).

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To a large extent, Solana has achieved this goal since it has a strong market share in industries like decentralised finance (DeFi) and non-fungible tokens (NFT). 

According to DeFi Llama, Solana hosts over 75 DeFi projects that have a combined total value locked (TVL) of over $1.98 billion. This makes it the fifth biggest platform after Ethereum, BNB, Tron, and Avalanche. 

Similarly, Solana has a strong market share in the NFT industry. Indeed, according to CryptoSlam, Solana is the second-biggest player in the sector after Ethereum. It is followed by Immutable X, Flow, and BNB, 

Further, Solana has been used to build some of the top web3 projects like StepN and Brave Browser among others. 

However, Solana has been a highly controversial blockchain project. For one, unlike its leading peers like Avalanche and BNB, Solana has experienced numerous outages in the past few months. When they happen, it becomes impossible for transactions in its ecosystem. Solana also became the victim of a hack recently.

Still, Solana price has done well in the past few weeks as cryptocurrencies rebound. It has risen by more than 70% from its lowest level this year. This recovery is mostly because of the overall bullish trend that has happened in the past few weeks. It also continued after the US published relatively weak consumer inflation data.

Solana price forecast

The four-hour chart shows that Solana price has been in a strong bullish trend in the past few weeks. Along the way, the coin has managed to move above the ascending trendline shown in green. It has also risen above the 25-day and 50-day moving averages while the MACD has moved above the neutral point. 

Notably, Solana has also formed an ascending triangle pattern. In price action, an ascending triangle pattern is usually a bullish sign. Therefore, there is a likelihood that the coin will soon have a bullish breakout as investors target the resistance at $50.

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*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.