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Can Solana (SOL) Make Newer ATHs Soon?

Can Solana (SOL) Make Newer ATHs Soon?

Posted Tuesday, August 17, 2021 by
Aiswarya Gopan • 2 min read

Touting superfast transactions and far lower transaction costs than Ethereum, Solana (SOL) extends its rally into Tuesday after its price broke through a new ATH during the previous session. At the time of writing, SOL/USDT is trading at around $70.14.

After gaining over 80% of its value over the past week, the potential Ethereum killer looks set to achieve newer highs in the near-term, especially supported by the stellar growth in the DeFi space – an area where its strengths can really shine. Although Ethereum has been known to capture the lion’s share of the DeFi market, supporting the maximum number of projects, its high congestion and transaction fees have driven several developers towards alternatives, and the Solana blockchain is a promising alternative as a result of its superior technology.

According to a leading DeFi investor, Daniel Cheung, Solana offers the most potential among Ethereum’s competitors and is also considered attractive by institutional investors on Wall Street. He shared his observations recently on Twitter, calling out the blockchain’s native token for showing less severe pullbacks in times of downturn in the crypto market and praising its high liquidity.

Known as the fourth generation blockchain, Solana offers a highly scalable platform for dApps and has been experiencing steadily increasing adoption and investor confidence over the past several months. It is known to be among the fastest blockchain protocols running in the world at present, supporting a speed of over 50,000 TPS against Ethereum’s average of only 13 TPS.

It has now surged into the top 10 list of cryptocurrencies by market capitalization, as per Coinmarketcap. Solana’s market cap has crossed $20 billion while its trading volume has also spiked sharply since SOL touched an ATH of over $73 on Monday.

Key Levels to Watch

Although Solana’s price has eased lower from its ATH, the 4-hour chart of SOL/USDT reveals a strong bullish bias among moving averages and the MACD indicator. However, the RSI and momentum are exhibiting signs of bearishness among investors as well.

SOL remains strong above the pivot point at $48.22 as well as two resistance levels at $60.10 and $66.67. An increase in buying pressure can take it higher towards a test of the third resistance level at $85.12.

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