- Solana performed a bullish crossover after the gradual market correction.
- Bouncing back from monthly lows of $78, SOL is back in triple digits.
- Blockchain analytics enterprise Santiment explains the trader sentiment shift.
This week, the rapidly growing Layer-1 blockchain Solana (SOL) continues its bullish streak. Solanaโs native cryptocurrency scorched past the $100 mark again on Wednesday, January 31, 2024. After facing a gradual market correction this month, SOL found its footing at $79 and rebounded to triple digits in a week since the monthly lows.
The 25% upswing in SOL in the last seven days comes amid the rising popularity of Solanaโs DeFi ecosystem. Popular dog-themed memecoins like Bonk (BONK) and Dogwifhat (WIF) served a powerful boost for the main token SOL, while the dynamic liquidity protocol Jupiter Exchangeโs native coin $JUP was listed on the biggest crypto exchanges today, including Binance, Bybit, OKX, KuCoin, HTX, and more.
Sponsored
According to the blockchain data analytics firm Santiment, Solana is one of the three large-cap altcoins that managed to rebound substantially since last weekโs overall cryptocurrency market correction. Indeed, SOL bounced back to triple-digit price after a two-week hiatus.
Along with Bittensor (TAO) and Helium (HNT), Solana scooped up double-digit gains due to a shift in investor sentiment. Specifically, the interest in speculative altcoins has risen as Bitcoin (BTC) calmed down in social and trading activity since last week after Grayscaleโs ETF outflows slowed.
Whales on the Move: SOL on the Way Up to New High?
Meanwhile, the largest cryptocurrency whales are making large transfers on-chain, sparking the crypto communityโs speculation. One whale shifted 150,000 SOL tokens from Bybit to an unlabeled cryptocurrency wallet address. Traders usually deem this a positive shift, as cashing out the cryptocurrency from an exchange hints at the intention to accumulate.
Shortly after this transaction, another cryptocurrency whale relocated a colossal 659,283 SOL between unmarked cryptocurrency addresses, converting to a massive $65.75M at stamped transaction time. However, the intention of this particular transaction is unclear due to both involved crypto wallets being unmarked.
Crypto chart analysts are marking the $104 resistance barrier as the next crucial conjunction for Solanaโs way up. If the bullish crossover persists, Solana could aim to retest the $123.68 yearly high acquired on Christmas Day. In a bearish scenario, the support cluster at $78 has proven to hold SOL from sliding further. Still, much depends on the ecosystemโs development and trader sentiment in the coming weeks.
On The Flipside
- Solanaโs success isnโt exclusively determined by the altcoin market, as the Layer-1 substantially increased its stablecoin presence.
- This month, Solana became the most popular blockchain for stablecoin transactions, taking up 33% of the overall stablecoin market.
Why This Matters
Solana is the top-performing large market capitalization altcoin of the year, whipping up 314% gains in the last 365 days.
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