The Solana price surged to $120 this morning as investors react to a tweet from Solana’s official account suggesting today will bring something special. Today’s jump extends Solana’s (SOL/USD) six-week winning streak, which has added over 400% to the price. Much of the bullish run is due to Solana moving into Non-fungible Tokens (NFT’s) and a resurgent crypto market. However, it was a well-timed tweet that fueled the highly-anticipated clearance of $100.
On the 28th, Solana posted a teasing video of a lighter, accompanied by the handle ‘Ignition”. The tweet was light on details. However, it promised an announcement would be made today. This set crypto Twitter alight with speculation, with many suggesting an inflationary token burning event could be on the cards.
Following the tweet, the Solana price exploded more than 30% to a record $119.67, almost double the $61.55 all-time high from May and 7,300% higher year-to-date. This incredible run has lifted Solana’s market cap to a staggering $34 billion, ranking SOL as the 8th-most valuable crypto asset behind Dogecoin (USD/DOGE).
However exciting today’s revelation will be, investors must be wondering if it will justify Solana’s recent appreciation. In the last week alone, SOL has jumped 80%. Furthermore, six weeks ago, the Solana price was $22.00. This could lead to extreme reversal if today’s announcement is anything less than groundbreaking.
The daily chart highlights the vertical nature of the recent price rally. This has lifted Solana deep into overbought territory, and the Relative Strength Indicator (RSI) is dangerously high, at 86.48. Turning to the Monthly chart, the rally looks even less sustainable and is reminiscent of Bitcoin in 2017.
However, the reality is that the Solana price bubble may keep inflating for some time, or it could pop any second. The trouble with parabolic rallies is that it’s hazardous taking a position in either direction. And whilst Solana may be the next Ethereum (ETH/USD), it also may not. On that basis, a well-thought-out Solana price prediction is not possible at the moment. However, sometime today, the price will either ignite or go up in flames.
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