Solana Skyrocket to Place New All-Time High. Is it a Good Time to Go Long?
Arslan Butt•Wednesday, November 3, 2021•2 min read
SOL, the native token of the smart contract-enabled blockchain Solana, has increased in value by 7% in the last 24 hours, making it the fifth-largest cryptocurrency by market capitalization.
This has inverted Cardano’s ADA, which seems unable to keep up with its fellow “Ethereum killer.” The price of ADA is up by 2% on the day, but it has lost 8% of its value in the last week. Solana currently has a market cap of more than $64 billion, while Cardano’s market cap is $63.5 billion.
SOL/USD Live Rate
[[Solana-graph]]
The SOL/USD closed at $220.678, after placing a high of $222.222, and a low of $201.147. SOL/USD continued its bullish streak, pushing its prices higher amid improved market adoption of the network.The cryptocurrency appears to be gearing up for a bullish impulse, in the hopes that it might flip Cardano regarding market capitalization. Data suggests that SOL might only need $1 billion in total market value, in order to position itself ahead of ADA.
The total market cap of Cardano is $63.44 billion, whereas data from CoinGecko suggests that Solana’s market cap is hovering around $62.42 billion. As these altcoins are neck and neck in terms of market share rankings for the fifth spot, there is a chance that SOL could flip ADA. These expectations kept SOL higher in the market on Tuesday, and pushed its prices close to the $223 level.
If Cardano’s market share remains the same and Solana manages to gain more than $1 billion in market value, then such market behavior is possible. However, it might be too early to tell, as these coins have a high correlation coefficient.
Solana violates double top resistance at $218 – What’s Next?
The SOL/USD is trading with a solid bullish bias at the $227 level, having already violated the double top resistance at $218. On the higher side, immediate resistance for Solana prevails at the $244 level, and a continuation of the bullish trend could extend the buying trend until the $265 level.
Daily Technical Levels
Support Resistance
207.142 228.217
193.608 235.756
186.068 249.291
Pivot Point: 214.682
On the lower side, immediate support for SOL/USD prevails at the $210 level. Violation of this level could extend the selling trend until the $198 level. An upward channel is extending support in the 4-hourly timeframe. Let’s consider staying bullish over the $214 level and vice versa. Good luck!
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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