Home CryptocurrencyAltcoin 3 Reasons Why SOL Price Is Up 30% in 2 Weeks — Will Solan’s Uptrend Continue?

3 Reasons Why SOL Price Is Up 30% in 2 Weeks — Will Solan’s Uptrend Continue?

by SuperiorInvest

Solana (SALT(BTC) and ether (ETH).

On the daily chart, SOL rose more than 4% to $39, the best level in 3 weeks. The token’s intraday gains came as an extension of a prevailing uptrend that saw its price increase by 30% in just 2 weeks.

SOL/USD daily price chart. Source: TradingView

Compared to Solana, Bitcoin and Ether underperformed, securing 16% and 22% gains over the same period. Let’s look at the mix of fundamentals and technicals that could have pushed SOL higher.

Merging Helios with Solana

On August 30, the lead developers behind the Helium Network, which offers decentralized 5G wireless coverage by allowing users to become hotspots, announced. migration management proposal to the Solana blockchain from its native chain.

Helium’s developers cited their “need to improve operational efficiency and scalability” while seeing Solana as an ideal solution.

SOL is a staking and transactional payment token in the Solana ecosystem.

SOL/USD weekly price chart. Source: TradingView

The NFT boom

The last buying period in the Solana market also coincided with its increases unfungible token (NFT) metrics.

Notably, volume on NFT marketplaces such as OpenSea, Metaplex, and Magic Eden reached nearly 1.2 million SOL (~$42.8 million) in the week ending September 11, data tracked by Nansen shows. This was further accompanied by an increase in NFT transactions, which reached a record number of more than 1 million in the same period.

The spike in Solan’s activity has emerged as a unique bright spot in the NFT sector, which has otherwise seen lower demand in recent months. For example, trading volume on the leading NFT market OpenSea has seen a drastic decline.

Of all the Solana NFT collections, the newly launched “y00ts mint t00b” collection recently secured the highest volume of trades with HyperSpace addition the average value is around $18.45 million per day.

Technical reflection of SOL

From a technical perspective, the 30% increase in SOL started after testing a historically significant support level.

SOL/USD has been consolidating sideways since May 23 in a range defined by two flat parallel trend lines. A decline towards the lower trendline (support) is usually followed by a 58%-60% bounce towards the upper trendline (resistance).

Related: Network outages were Solano’s ‘curse’, says co-founder

Similarly, a pullback from the upper trendline saw the price of SOL fall towards the lower trendline as shown below.

SOL/USD weekly price chart. Source: TradingView

With SOL recovering, its path of least resistance appears to be towards the upper trend line near $47.50, which is roughly 38% up from current price levels.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading step involves risk, you should do your own research when making a decision.

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