Network data shows Solana underperformed competing chains, but SOL bulls are confident that the altcoin’s price will rise higher.


Solana's 
SOL
$113
 native token, SOL, gained 18% in the 7 days leading to Feb. 13. The price run to $115 allowed Solana to surpass its rival BNB BNB
$326
 in market capitalization to claim the third spot, when excluding stablecoins.The driving force behind SOL’s bullish run include airdrops and the network’s ability to provide a more affordable and user-friendly solution compared to its competitors. However, are these factors sufficient enough to justify a rally toward $120 and beyond?
SOL token (area) vs MATIC, ETH, BNB. Source: TradingView
Experienced crypto investors tend to argue that Ethereum network rollup solutions provide enough scalability and reduced costs to keep investors in the network, but new entrants will likely find Solana’s user experience much simpler. The same holds true for nonfungible token (NFT) launches and airdrops targeting 10,000 or more addresses, as history shows that even layer-2 solutions face increased transaction costs or delays during peak demand.

SOL was unaffected by Solana’s recent network outage

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Solana is not immune to outages and the network faced a 5-hour downtime on Feb. 6, prompting validators to coordinate a software update and restart from a specific slot. Exchanges also halted deposits and withdrawals of SOL and Solana SPL tokens, impacting users’ ability to interact with decentralized applications (DApps). The Solana network has experienced twelve similar outages in the past two years.
On the positive side, by closely coordinating software development, Solana can improve and implement upgrades at a much higher pace than Ethereum Virtual Machine (EVM) compatible networks. While Solana developers take a few hours to develop, test, and implement a new validating software solution, a similar effort can take years on the Ethereum mainnet. This difference explains why SOL token was not impacted by the recent network downtime.

How long will the bull market benefit SOL price?

SOL price tends to track Bitcoin 
BTC
$49,663
 price and the wider crypto market trends. However, to determine whether SOL’s rally above $110 is sustainable, one should measure Solana network activity, which is typically the leading driver for SOL demand.Top blockchains 7-day DApps volume rank, USD. Source: DappRadar
Related: Solana’s market cap overtakes BNB, secures 4th position
The initial analysis of DApps activity is not favorable for the Solana network, as data from the past 7 days shows a 29% contraction in the number of active addresses and a mere 4% increase in volumes. In contrast, BNB Chain and Polygon experienced nearly a 30% increase in DApps volumes, according to DappRadar. In absolute terms, Solana’s activity is far lower than BNB Chain’s, given that SOL and BNB tokens hold a similar market capitalization, but should this be a concern to investors?
Although the data does not indicate a sharp SOL price correction risk, it raises questions about whether the path above $120 and the subsequent $52.5 billion valuation are sustainable in the medium to long term. SOL bulls rely on the network’s capacity, as evidenced by the 91.4 million transactions processed in the last week alone, which could be the decisive factor if DApps activity picks up, regardless of whether driven by airdrops or not.
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Solana (SOL) Surges Past $110 Resistance, Eyes Upside Momentum

• The News CryptoCryptocurrency News2024-02-14 02:15
• 
• Solana (SOL) price surged over 7%, surpassing $100 and $110 levels that previously acted as resistance.
• SOL traded between $90 and $100, but recent bullish sentiment enabled it to challenge resistance around $108.
• Continued buying pressure may lead to a breakout above $108.

The price of Solana (SOL) surged more than 7% recently, breaking above the $100 and $110 levels that had previously capped upside attempts through early 2024. The latest rally comes as the broader crypto market sustains positive momentum this month.
Solana recently traded in a range between about $90 and $100, struggling to establish a direction. But strengthening bullish sentiments this week enabled SOL to break its sideways trend and challenge fall 2022 resistance around $108 once again.
While Solana faced rejection and pulled back late last month after failing to crack resistance, persistent buying pressure has given bulls another chance to overwhelm that barrier. A daily close above the $108 zone would signal a likely continuation toward the next test at $117.

Can SOL surge to $117?

Making additional progress remains contingent on the Bitcoin and crypto markets maintaining their fledgling uptrend in the near term. But positive technicals underpin the recent Solana advance as the Moving Average Convergence Divergence (MACD) indicator on the daily SOL chart flashes a sustained upward trajectory.
If momentum pushes the price decisively past the $117 hurdle, short-term targets emerge around $125 and then 2022’s $135 peak. However, failure to overcome resistance carries the risk of a retest of Solana’s 50-day exponential moving average, which supported the recent bounce, near $100.
While history urges some caution given Solana’s repeated struggles to hold higher levels, the resilient buying witnessed this week highlights the lingering bullish conviction among token holders. Their faith now faces a new test as SOL challenges resistance once more.
But clearing the recent ceiling opens the door for Solana to surge, notably while consolidating above its 20-day moving average after regaining that dynamic support level this week. The push resumes as SOL tries to conquer the 2022 hurdles across its next leg.

Cardano (ADA) Secures Crucial Breakthrough, Ethereum (ETH) Breaks New High, Solana (SOL) on Verge of Important Price Test

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Cardano has surged past the 50-day EMA, a technical indicator often used by traders to gauge the intermediate trend direction of an asset. The 50 EMA breakthrough signals strong bullish sentiment, as ADA's price climbs to test newer highs, which is a promising sign for investors seeking growth opportunities.
The current support level for ADA is established at around $0.50, which recently acted as a strong bounce point for the price. This level will be crucial for Cardano to maintain its bullish stance. Should the price remain above this support, it could pave the way for ADA to target the next resistance level at approximately $0.60.
ADA/USDT Chart by TradingView
If ADA continues its upward momentum and consistently closes above the 50 EMA, we could witness a further increase in buying pressure. This could lead to a new resistance test and potentially bring ADA to higher price points, eyeing the significant $0.65 mark as the next major target for bulls.
Conversely, should Cardano's price fall back below the 50 EMA, it may enter a consolidation phase or even a retracement. In this price drop scenario, the asset would likely find its first technical and psychological support level at $0.50. A breach below this could trigger sell-offs, leading to a retest of lower support levels, possibly around $0.48.

Ethereum's surprising return

Ethereum has achieved a new high in its valuation. The digital currency has seen its value surge, crossing a critical threshold that could indicate further upward momentum.
Ethereum's recent breakthrough above the $2,600 mark signals a robust upward trend. This level previously served as a significant resistance, capping the asset's price during the previous cycle. With this level now surpassed, it sets a new local high for the asset, suggesting that the price may continue to rise as market confidence grows.
Related
Ethereum Whale Goes All in on ETH in Brave Move as Price Skyrockets
The support level for Ethereum is currently at around $2,500, which aligns with the moving averages that have historically acted as dynamic support during retracements. A sustained position above this level could reinforce the bullish sentiment and support the thesis of continued growth.
On the growth front, the continued rally could be fueled by the increased adoption and utility of ERC404 tokens, which combine the liquidity of ERC20 tokens with the uniqueness of ERC721 tokens. The high network fees on Ethereum also point to significant network utilization, hinting at robust on-chain activity that could support the asset's price.

However, should a price drop scenario occur, a retest of the $2,500 support level is likely. If this support fails to hold, Ethereum could face a sharper decline toward the next significant support area, potentially around the $2,400 level, as traders may start to take profits, and momentum could slow down.

Solana weaker than expected

Solana is currently at a crucial juncture, testing the upper bounds of its established price channel. The asset has shown resilience and consistent performance over the past few weeks, leading to a critical moment that may define its trajectory in the short to medium term.
Solana is trading around the $113.8 mark, approaching the upper resistance line of its price channel, which is approximately at the $115-$117 zone. This resistance level is particularly significant as it has previously acted as a strong point of rejection, prompting price pullbacks.