Solana($SOL) suffered a 42% reversal in the space of less than 2 weeks. However, the $SOL price has seen one of the strongest reactions over the last couple of days, with a 26% bounce so far. Will $SOL continue to leave $BTC and $ETH in the shade over the rest of this bull market?
Solana major tech still to come
Solana is catching Ethereum, and it is outperforming Bitcoin. We are arguably more than half way through this current bull market - unless subsequent price action pushes crypto into the next bear market ahead of time. During this time, $SOL has been the leading large cap crypto, and Firedancer is not even implemented yet.
A fully functioning Firedancer, which is a validator client built on Solana, could be the equivalent of the traditional finance stock exchange - the Nasdaq. A live demo of the Firedance client in 2022 recorded a blazingly fast 1 million tps per second, which far exceeds what the Visa network can do for example.
So with this huge technology boost to come, and the possibility of a Solana Spot ETF on the table for next year, Solana probably isn’t going to be languishing among the rest of the crypto large caps.
$SOL battles to reenter triangle
Source: TradingView
Looking at $SOL against the dollar, it can be seen that the price has reentered the triangle again, although this will still remain to be seen by the end of play on Tuesday.
It’s a big ‘if’, but if $SOL (and probably $BTC and the rest of crypto) can survive what could potentially be another sell-off in the traditional stock markets later today, and over the course of the week, $SOL could get back to its local high of $194, although this might take some time. $122 and $110 are supports below.
$SOL rises against $BTC again
Source: TradingView
For the SOL/BTC pair, it can be noted that $SOL is rising once more, after falling out of its wedge pattern, and also on reaching the resistance at 0.0027 sats. The price has regained the mid-range (dotted blue line) and looks to be heading for the resistance yet again.
Final resistance levels for $SOL against $ETH
Source: TradingView
For the SOL/ETH pair it is a similar story, except here, the $SOL price is already at the horizontal resistance level. If $SOL can break through here, pierce the range high just above, and then break the all-time high at around 0.061 ETH, it would be the clear blue skies of price discovery for $SOL thereafter.
All this said, a lot will depend on how the crypto market reacts to the ongoing carry trade unwind, and the various other selling that is still taking place. However, with central banks cutting rates, and global liquidity on the uptick, this could provide a late summer boost for all markets.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
