Solana (SOL) Eases Lower After Breaching $100: What’s Going On?
Aiswarya Gopan • 2 min read
Potential Ethereum killer and one of the fastest blockchain networks – Solana (SOL) rose to an all-time high (ATH), crossing the $100 mark for the first time late last week, although it has eased slightly lower since then. At the time of writing, SOL/USDT is trading at around $98.89.
The latest surge has helped propel Solana to overtake USDC and Polkadot to become the eighth largest cryptocurrency by market capitalization on Coinmarketcap. Over the past seven days, the SOL token has appreciated by almost 35% in value, supported by the bullish sentiment among investors towards cryptocurrencies in general and several exciting fundamental developments. So, what’s behind this surge?
The buying spree was triggered after the Solana community unveiled a new teaser video on social media about a concept called ‘Ignition‘ scheduled to go live on Tuesday, August 31. Users speculate that this could be a token burn event, although previous burn events have not had their own exclusive web page before.
With a caption, “The sky’s the limit. What will you launch?”, the page provides little clues but has caused quite the flutter in the crypto community at large, powering the spike. Scheduled to occur starting on August 31 and to last until October 8, there are some users who expect it to be some kind of an event targeting dApp developers or NFT creators, encouraging them to come up with new and exciting projects to run on the Solana ecosystem. With no further clues being offered, guess we’ll all just have to wait until tomorrow to know more about Ignition and whether it will boost a stronger rally in Solana soon.
Key Levels to Watch
In the meantime, if you’re looking to trade Solana today, here’s some information that can help. On the 4-hour price chart of SOL/USDT, moving averages and the MACD are signaling a strong bullish bias. Although, the momentum indicator suggests some interest among sellers, possibly looking to make some profits at the moment.
Solana’s price is sitting comfortably above the pivot point at $86.03 and a leg higher could see buyers encounter resistance at $106.02. Further optimism about the upcoming ‘Ignition’ event could see this level being broken, which could take it towards a new ATH.