Why Solana Price is Up 5% at $38

SOL (Solana) has witnessed a jump of 5% today relative to its 24-hour low, moving from $36.82 in the early hours of the morning to $ 38.67 by evening. According to CoinGecKo, in the past week too, SOL witnessed a jump of 20% and of 19% in the last two weeks. The jump of SOL has bagged it the tenth position in the top 100 best-performing cryptocurrencies in the past week, leaving behind tokens like APE, ATOM, XRD, EVMOS, RVN, and RPL.

With Solana looking forward to various significant developments, like integration with Hivemapper, and Helium, it seems like imminent evolution and expansions are paving way for the upward trend for its native token, and helping it make up for lost grounds

Solana (SOL) price on the path to recovery

In the past month, SOL witnessed a continuous slip by 17%, and an up by approximately 35% in the last 90 days. With its relative strength index increasing above 60 days and closing at 70 clearings indicates the revival of its technical indicators.

Source: cryptonews.com

It is further to be noted that its 30-day moving average (in the red above figure) remains below its per day average of 200 (highlighted in blue) indicating its wait for a rally, and with its shooting RSI, it can be predicted that such a rally may arrive soon. The apprehension on the rally is strengthened by the fundamental indicators of SOL, which are the results of the increasing adoption of SOL. To be more specific, decentralized wireless platform Helium is planning to switch to Solana, which is however pending a vote by its community.

The voting will be approximately close in eight and a half days, at which the market may likely witness another SOL rally. Another interesting development around SOL is that it has been anticipated that map platform Hivemapper is also planning to launch its blockchain in the coming months.

Such developments are pushing the Solana making it bullish. The increment in the Solana based NFT transactions is also why SOL is having such a good time.

An Ethereum Killer?

According to DefiLlama, Solana is the fifth biggest layer-one blockchain in terms of total value locked in. However, it had been working to become even bigger in late 2021, prior to the number of unfortunate technical issues and ongoing market downturn. This year Solana suffered at least five outages, with the ceasing of block production at various points because of consensus failure and other bugs. Such incidents catalyzed the downturn of the SOL’s prices significantly resulting in a substantial drop in early 2022 and amid April and May.

With its outage in early August, it is in the past weeks that SOL has been able to revive and see growth. The above-mentioned integration and various upgrades introduced to reduce future outages have immensely helped in this growth. It was concluded by the By Bit report that Solana had witnessed a growth in Quarter 2 of this year due to its upgrade that helped in garnering more traffic in different areas of activity like DAOs and NFTs. Further with the Solana Summer Camp hackathon in Quarter 3, further growth is expected.

Though this jump and the upward trend are highly encouraging, SOL will need to continue updating its code and launching of new apps to compete with Ethereum after this Merge. However, in the past week, SOL witnessed a bigger rise in terms of percentage than ETH, there is a probability that it can compete with ETH.