The Solana price shows no signs of slowing down just yet, rallying to a new all-time high overnight. Bringing its 2021 gains to +3900%.
The last few days have seen mixed results for digital assets. Bitcoin and Ethereum are sharply down, in fact Bitcoin has just entered a Bear market from its high. The Solana price has shrugged off the woes in the broader for now.
Solana is a layer-2 scaling solution for the Ethereum network. Essentially the protocol increases scalability by utilizing a hybrid model, with both proof-of-stake (PoS) and proof-of-history (PoH).
The Solana price rally has come off the back of the growing investor interest in assets tied to the Decentralised Finance (DeFi) industry.
At the current $54.22, Solana is the 16th largest crypto asset, with a market cap of $14,7 Billion. There is a maximum supply of 494,519, 163, of which over 272 million are already in circulation.
Its an incredible performance considering that Solano (SOL) has only been trading since March 2020.
The price has broken clear of an ascending trend line in place from the previous all-time high of $49.9000 on the 1st of May.
This break was the trigger for momentum buying, which took the price through to today’s highs. SOL is pausing here, above the break-out line at $54.3650.
When a price breaks out of as range, it often returns to the break-out level. This is what Solana is attempting at the moment. How the coin performs here will be key.
Clearly, there is bullish momentum. However, it’s nearly never a straight line to the top. If the price falls back below the trend, it leaves plenty of room to move to $40.0000.
Nonetheless, I still maintain a bullish stance on Solana and expect the price to appreciate from here over time. Investors wishing to gain exposure to the Solana price may wish to wait for a better entry point. The current extension is starting to look a little stretched, and the market may need a period of consolidation before a further rally.
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