Technical analysis indicates the possible rapid growth of altcoisS. SOL continues to be the most dynamic cryptocurrency from the TOP 20. Over the week, its rate has increased by 25% and is $103. An additional impetus for the growth of the asset was the increased popularity of the Jupiter decentralized exchange on its blockchain with a trading volume of $585 million per day. The development of the Solana ecosystem gives investors confidence that its coin’s sustainable rally will continue.
Technical analysis also speaks in favor of SOL. The cryptocurrency has only recently broken out of the converging triangle, testing it as a new support level and continues its upward movement. Analysts believe that potentially this year the coin could update its historical maximum, recorded in 2021 at $259.
The number of new addresses on the network this week reached a new record high of over 450,000. At the same time, the number of active addresses is quickly returning to annual peaks of 1 million. Likewise, the trend in value moved on the blockchain is also recovering and is now just under $40 billion in 7 days.
Overall, positive trends and positive technical indicators indicate a high probability that the SOL price will quickly reach new heights.
Solana (SOL) continues to be one of the best-performing cryptocurrencies
Increased interest in it has led to Solana’s market capitalization reaching $43.7 billion, which is significantly more than the $38.1 billion recorded as of January 22.
Indeed, Solana’s recent gains have coincided with a short-term market rally led by Bitcoin (BTC). Most cryptocurrencies benefited from Bitcoin’s gains amid slowing earnings from the spot exchange-traded fund (ETF) Grayscale Bitcoin Trust (GBTC). At the same time, buying pressure has emerged on Solana’s side as the network experiences increased activity due to meme coin transactions.
The new popular meme token WEN is currently distributed to one million users, including users of the Solana Jupiter exchange, owners of Solana Saga phones, and NFT holders of certain Solana-based collections.
After the success of the first Solana smartphone, the blockchain project team announced the release of the second, and demand for it is already growing. In particular, pre-orders for the device almost reached 30,000 within an hour. Against the background of increased activity, the number of addresses on the network is also increasing – in January 2024, at least 10 million new addresses were registered on the network, most of which are associated with the activity of meme coins.