Solana Continues to Be Bullish. But Will It Sustain?

• Solana’s market cap rose 13%, propelling it into the top 5, overtaking XRP.
• Solana Saga phones are in demand due to the accompanying BONK coin airdrop.

Solana has been dominating headlines with its impressive performance in the crypto market. The native token, SOL, experienced a staggering 14% surge within just 24 hours, soaring to a nineteen-month high of $85. This remarkable momentum propelled Solana’s market capitalization to a 13% increase, surpassing XRP and securing a spot among the top 5 cryptocurrencies by market capitalization, currently valued at $36 billion.

The surge wasn’t limited to the token’s price alone; trading volume also saw a significant uptick of 115%. Solana’s upward trajectory traces back to early December when it shattered a long-standing resistance level at $68. 

Despite some minor volatility in subsequent weeks, bullish trends prevailed, notably driven by heightened demand following the launch of Solana Saga smartphones. Crypto traders flocked to purchase these devices as they came bundled with an airdrop of its current sensation BONK meme coins, surpassing the hardware’s value.

Interestingly, despite being dubbed the “worst phone of 2023” by renowned tech reviewer Marques Brownlee (MKBHD), the Solana Saga phones continue to fly off the shelves, especially in the US and UK, reflecting the insatiable demand triggered by the airdrop incentive.

Solana achieved another milestone by surpassing Ethereum in decentralized exchange (DEX) volume for the first time, underscoring its growing prominence in the crypto ecosystem. Additionally, the total value locked (TVL) in the Solana network has surged to its highest level since November 2022. It marks a significant rebound from the collapse of the FTX exchange.

What’s Next for SOL?

Analysts closely monitor Solana’s price movements amid these developments, revealing a bullish outlook. The daily chart suggests a potentially bullish trend, with the 9-day exponential moving average (EMA) positioned favorably at $76. The daily relative strength index (RSI) signals an overbought condition at 69, indicating a degree of caution.

Solana Price Chart, Source: TradingView

Should SOL maintain its robust recovery without major signs of weakness, its price trajectory appears poised for further gains. With an intraday gain of 144, the coin recently breached a resistance trendline within a rising wedge pattern.

Sustained stability above this breached level is anticipated to fuel buyer momentum. It potentially propel SOL towards $95 initially, followed by a target of $120.