Solana Is Rising Weakly, Will It Return To The $20 Price Zone?
- Solana has seen a sustained negative bias despite encouraging developments in its network.
- Recent legal developments and regulatory ambiguity have contributed to the negative trend, including lawsuits brought by the SEC against major cryptocurrency exchanges like Binance and Coinbase.
- The increased popularity of Solana’s network due to high Ethereum gas fees and the surge in Bitcoin’s price could possibly aid SOL’s recovery from the current decline.
Despite encouraging advancements in the Solana network, the native cryptocurrency, Solana (SOL), has performed poorly, with a sustained negative bias.
This negative trend may be ascribed to a variety of macroeconomic issues, including concerns about the US debt limit and debates about worldwide cryptocurrency legislation.
Bakkt, a New York-based derivatives exchange, delisted prominent cryptocurrencies, which was a major move altering the altcoin scene. This decision was driven by recent legal developments in the United States, including lawsuits brought by the Securities and Exchange Commission (SEC) against major cryptocurrency exchanges such as Binance and Coinbase.
The SEC labeled over 20 digital assets, including SOL, as securities in their litigation cases. As a consequence of the accompanying regulatory ambiguity, several trading platforms, such as Robinhood, have discontinued coverage for certain assets.
Nevertheless, Bitcoin has just surpassed $31,000 due to a wave of confidence from institutional investors who began scrutinizing the commodity after a high-profile ETF application and the debut of a new crypto exchange.
The surge comes after BlackRock, the world’s largest asset manager, submitted to the US Securities and Exchange Commission last week for a spot Bitcoin ETF.
Moreover, the increased popularity of the meme token Pepecoin (PEPE) has contributed to the Ethereum network’s skyrocketing transaction costs. Because of the increase in Ethereum gas fees, consumers are looking for alternatives, such as the Solana network, for quicker and more cost-effective transactions.
The increased usage of Solana’s network might possibly sustain SOL’s stock and help it recover from the current decline. Investors are currently debating whether it is a good time to buy SOL since its price forecast indicates an upward trend.
Solana’s price has just begun a new upward trend from the $13.5 support zone. Bitcoin and Ethereum have recently seen sustained gains, generating good movements in Solana and Cardano.
The bulls are actively pushing the price up from the old support area that SOL broke earlier, $17. Besides, SOL price is currently trading above the 26.6% Fib level, creating the premise for a correction around the $16.2 price zone before it bounces up further.
SOL is now trading above $17, but traders should note that the $20 price level is extremely important as it is the confluence of the 50% Fib and the bearish trend line created from the April top. At this price, SOL will bounce up very strongly.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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