Solana’s Impressive Rally Amidst Broader Market Selloff
Solana (SOL) has experienced a significant surge, with its price reaching a high of $198 after a 15% rally in just 24 hours and a 31% increase over the past week. This impressive rally occurred despite a broader cryptocurrency market selloff on Friday. The surge in Solana’s price can be attributed to several factors, including the success of Solana-based projects such as meme coins and decentralized exchanges.
Solana Celebrates Genesis Day
March 16th marked the four-year anniversary of Solana’s launch on Mainnet Beta, an event known as “Solana Genesis Day 2024.” The main focus of Solana was to support smart contracts and decentralized applications (dApps). In November 2021, Solana’s total value locked (TVL) surpassed $10 billion, more than a year after its launch. However, the TVL fell due to recurrent chain outages.
To celebrate Genesis Day, Solana shared some impressive statistics on Twitter:
- 276+ billion transactions
- 1600+ validators
- 254+ million blocks
The Solana ecosystem has been gaining growing support, leading to a rebound in TVL from $1 billion in January to over $4 billion currently. This growth is primarily driven by staking, liquid staking, and decentralized exchanges, according to data from DefiLlama.
SOL Price Targeting $210?
In the past 24 hours, SOL’s price has surged by over 15%, currently trading at $198. The 24-hour low and high are recorded at $166.72 and $193.92, respectively. However, the trading volume has decreased by 10% in the last 24 hours.
Renowned analyst Michael van de Poppe observed the significant run on Solana. He highlighted that SOL’s price experienced a 35% correction in higher timeframes when compared to BTC and USDT pairs. The price then underwent a retest before further continuation. Van de Poppe advised investors that a 20-60% correction is often the best entry point for altcoins during a bull market.
Miles Deutscher, a crypto analyst and DeFi expert, disclosed that he accumulated tokens including SOL, SEI, NEAR, FTM, SUI, and others during dips.
Deribit data reveals that traders are actively making fresh calls for a strike price of $210 and $220 before options expire on March 22. Additionally, there are currently 1,280 call options with a strike price of $210 and a notional value of $4 million. This indicates that traders are targeting the $210 mark before March 29.
Furthermore, SOL futures open interest has increased by nearly 15% in the past 24 hours and 4% in the past four hours. However, there has been an almost 2% drop in just one hour. These figures suggest that there is significant buying pressure on Solana on derivatives exchanges but also some profit booking in the short term.
Hot Take: Solana’s Momentum Continues
Solana’s recent rally demonstrates its resilience amidst a broader market selloff. The strong upside momentum can be attributed to various factors:
- The success of Solana-based projects, including meme coins and decentralized exchanges
- The celebration of Solana Genesis Day
- The rebound in Solana’s total value locked (TVL) from $1 billion to over $4 billion
With SOL’s price hitting new highs and traders setting their sights on the $210 mark, it is evident that Solana continues to attract attention and investment. As the cryptocurrency market remains volatile, investors should closely monitor Solana’s performance for potential opportunities.
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