Solana’s native cryptocurrency SOL had a strong bounce back since the start of the year as did many top cryptocurrencies. However, since February, the altcoin has experienced a slowdown. But a recent signs suggested that the bulls are back and in a big way.
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SOL exchanged hands at $23.53 at press time, which represents a 16% upside in the last 24 hours at the time of writing. Zooming out reveals why this latest price spike is an important observation.
A long-term descending resistance line underpinned SOL’s price action since November 2021. The latest rally managed to push above the same resistance line.
Source: TradingView
From a technical analysis perspective, this bullish bounce indicated a pattern break which may underscore the next phase of SOL’s price action. In other words, there is a notably higher likelihood of an extended bullish recovery after this pattern break.
Furthermore, Solana’s on-chain metrics highlighted a spike in the weighted sentiment, reflecting an investor confidence boost. It was also accompanied by a volume surge which marks the second highest spike in the last 30 days.
Source: Santiment
The rally was fueled by huge influx of liquidity. SOL’s market cap grew by roughly $1.3 billion in the last two days, and at press time, stood at its highest level in the last four weeks. The added upside might be fueled by short positions being liquidated, thus forcing trades to buy aggressively to cover their short losses.
Source: Santiment
Realistic or not, here’s Solana’s market cap in BTC’s terms
The rally also came at a time when SOL’s volatility was at its monthly low. It notably pivoted, confirming that it has regained some volatility.
However, it’s not all sunshine around SOL. Solana’s development activity didn’t exactly inspire confidence as it was down to its lowest level in the last four weeks at the time of writing.
Source: Santimnent
Low development activity may have a negative impact on investor confidence. On the other hand, it appears to have had no impact on the latest rally, but may potentially discourage investors from holding on to their coins for longer.
Solana name service integration
The price surge wasn’t the only thing on Solana’s book of offerings and SOL investors couldn’t be happier. As of 11 April, Solana announced that Brave finalized the Solana name service integration. But what does this mean?
According to the official announcement, users can now use the .Sol domain names within the Brave wallet. This development will facilitate easier transactions, identity management, and offer easier access to censorship resistant websites.
Solana Name Service (SNS) is now available to all Brave users! SNS is a top-level domain system on the Solana blockchain that allows for identity management, easier transactions & access to censorship-resistant websites.
Learn more at https://t.co/9JhBxzp4cs pic.twitter.com/fTPeQI3yU5
— Brave Software (@brave) April 11, 2023
Source: https://ambcrypto.com/as-sol-breaks-through-key-resistance-level-this-is-what-investors-can-expect/