Solana price is having a good day. The token has jumped by more than 7% in the past 24 hours and is approaching its all-time high. It is trading at $204, which is slightly below its all-time high of $214. This rally has pushed its total market capitalization to more than $61 billion, making it the sixth biggest cryptocurrency in the world.
SOL token rebound accelerates
Solana is a blockchain project that has become relatively popular among developers and traders in the past few months. The platform is a third-generation cryptocurrency project that has built a platform that is better than Ethereum.
To achieve that, Solana has raised millions of dollars from some of the best-known Silicon Valley investors. In its most recent capital raising, the company raised $314 million from investors like Andreessen Horowitz.
Solana price has grown sharply mostly because of the strong user adoption to its network. They are attracted to it because of the significant speed and reliability of the network.
According to DeFi Llama, there are 20 DeFi applications built using Solana’s network. These apps have a total value locked (TVL) of more than $12.5 billion. Still, there is a likelihood that most of the DeFi platforms built using Solana are not included in DeFi Llama’s calculation. For example, Solana says that 116 DeFi applications are currently using its technology.
Solana is also being used to build other types of applications. For example, there are almost 200 non-fungible tokens built using the technology. As a result, a quick look at its stats shows that the number of transactions has been in a bullish trend.
Still, while Solana will be a leading platform in the future, it will be difficult for it to overthrow Ethereum. While Ethereum is known for higher costs and low speed, it is the preferred platform for developers. Therefore, most of these developers will remain in the ecosystem as it upgrades to a proof-of-stake network.
Solana price prediction
The daily chart shows that the Solana price has made a modest recovery in the past few days. The coin has risen by 75% from its lowest level in September. This rally has been supported by the 25-day and 50-day moving averages. At the same time, it is now approaching the all-time high of $214. It has also formed what looks like a cup and handle pattern.
Therefore, in my view, I suspect that the SOL price will soon have a major bullish breakout. This breakout will be confirmed if it manages to move above $214. If this happens, the next key level to watch will be at $300.
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