Solana (SOL) has been forward of the remainder of the crypto market relating to positive factors. The market had seen renewed curiosity following the vacations which led to a small restoration right here and there particularly for the massive gamers however Solana had been in a position to break utterly from the pattern and document double-digit positive factors within the final couple of days.
What Is Driving Solana’s Progress?
Regardless of being on the forefront of huge FUD that has dragged its worth down towards two-year lows, Solana has now been in a position to recuperate quantity of positive factors over the previous few days. Whereas the feedback from Ethereum founder Vitalik Buterin in help of the blockchain had helped, there was one other issue pushing the value increased.
A brand new meme coin referred to as BONK had graced the Solana ecosystem and after being airdropped to holders of main NFT tasks, the value of the meme coin had soared. The ensuing positive factors would see traders FOMO into the cryptocurrency and since they wanted to commerce on the Solana community, the value of SOL had surged given the entire new consideration it was receiving.
In two days, SOL ballooned to turn out to be probably the greatest performers within the house coming into the brand new yr. It’s up over 16% within the final 24 hours alone and the value of the digital asset has moved from the loss territory into the inexperienced over the past week. It’s now sitting at nearly 37% positive factors for traders over this time interval, in line with information from Coinmarketcap.
Can SOL Maintain The Positive factors?
Proper now, the expansion of SOL out there remains to be largely pushed by the FOMO triggered by the BONK meme coin. Because the hype round this coin has been waxing sturdy, it’s anticipated that curiosity will stay excessive amongst traders, thereby sustaining the expansion pattern recorded by Solana.
Nonetheless, it is very important remember that the BONK cryptocurrency is essentially pushed by hype, and identical to another meme coin, it’s anticipated that this hype would die down sooner or later. Now, as soon as this occurs, the decline in curiosity would additionally considerably influence the value of SOL, dragging it down together with it. That’s until one thing else comes as much as drive the value of SOL increased.
Additionally it is anticipated that some profit-taking would start, the place traders would start to dump SOL to assert the positive factors already being seen. This, as nicely, will contribute to a wind-down, and a downward correction would comply with. However this correction will not be anticipated to assert greater than 10% of present earnings on condition that the value of SOL is now buying and selling above its 20-day shifting common of $12.3.
SOL is altering palms at $13.72 on the time of this writing. It has overtaken Shiba Inu to turn out to be the fifteenth largest cryptocurrency with a market cap of $5.04 billion.
