- Solana has shown resilience, with a 35% rise since the SEC named it security.
- Solana’s bullish run is now meeting resistance.
- Can Solana break past its yearly high of around $25?
Despite facing significant regulatory risk and other challenges, Solana has shown remarkable resilience. SOL has recently recovered from its latest drop, showing signs of a bullish breakout. However, before reaching a yearly high of $25, the token ran into resistance.
These developments have left traders wondering what’s next for the “high-performance blockchain.”
Solana’s Meets Resistance: What’s Next?
In the week ending on Sunday, June 9, SOL has surged 10%, from $20 to $22, demonstrating its resilience. The upward move completed its 35% recovery since the US Securities and Exchange Commission named it a security.
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Thanks to that momentum, Solana successfully broke through a significant resistance level formed in February. If this momentum continues, the next target for Solana could be $25, coinciding with the last local high.
At the time of writing, Solana trades at $21, aligning with the 200-day exponential moving average (EMA) resistance. This level could turn into a reversal point for Solana, setting the stage for the next wave of upward movement.
Factors Contributing to Solana’s Performance
While there isn’t a specific identifiable catalyst for Solana’s recent price rally, several factors contribute to its upward trajectory.
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June saw the industry engulfed in a regulatory panic after the U.S. Securities and Exchange Commission (SEC) classified Solana, among other tokens, as a security. Though the resulting sell-off drove the price of SOL down to $15, the token could bounce back to its current level of $21.
Playing their part were the ongoing developments in the Solana ecosystem. One significant event was the integration with the Helium Network in April, enhancing the utility and scalability of both networks.
More recently, there has been a buzz around Jump Crypto’s Solana Firedancer, a new validator client for the network. These improvements are positive signs for traders betting on Solana in the long run.
On the Flipside
- Despite the positive developments, Solana still faces regulatory challenges in the US stemming from the SEC lawsuit.
- Despite boasting high performance, Solana has taken criticism for its centralization and network outages.
Why This Matters
For crypto traders, understanding the price performance and future prospects of cryptocurrencies like Solana is crucial for making informed trades.
Read more about Solana’s regulatory woes in the US:
SEC v. Binance Puts Screws on U.S. Exchanges to Delist ADA, SOL, MATIC
Read more about recent reports of strife in Binance:
