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Solana's Next Move: Bullish Breakout or Bearish Breakdown?

cryptonewsz.com 07 October 2024 12:30, UTC

Solana’s native token, SOL, is currently listed at $147.66, up by 2.87% in the last 24 hours. It further reflects a decline of 5.43% over the last 7 days and a rise of 16.15% over the last 30 days. SOL is aiming to breach the $150 market as the ongoing week comes to an end, paving the way for a new high of around $180. However, the market is still in splits, with many speculating a bearish run in the near future.

The 14-day RSI was 52.24 at press time, indicating that there is enough to qualify as a buy candidate. Despite the token’s underperformance, there is less selling pressure and more sentiment to accumulate. The FGI stands at 50 points, representing neutral emotions. Investors are still undecided about their allocation to SOL. Whales must strongly support the accumulation if the token is to meet the prediction of $1,000 between 2025 and 2030.

Bulls do have a grip. Reports began to circulate in the market during the final days of September 2024. If these reports are accurate, accumulation becomes more logical, and SOL is poised to mark an uptick.

The bullish case is strengthened by multiple factors, including, but not limited to, ecosystem expansion, institutional acceptance, and scalability of L2.

The unlocking of 524,000 Solana tokens could drive ecosystem growth. They are expected to be activated in the first half of October 2024 and are collectively valued at over $81 million. With the unlocking of tokens, members are granted increased access to them, which enhances their efficacy within the ecosystem. The total value locked, which was last observed to increase by a mere 2.75%, continues to be a source of concern.

Once unlocked, the price is likely to face selling pressure, which could lead to a price decline. Solana’s price prediction still projects a rise to $208.02 by the end of 2024. Even if SOL lands at $185.33, it would still surpass the current value, bolstering bulls in their continuous pursuit.

Institutional adoption is on the horizon, provided that Solana expands its reach locally. It is already expected to surpass Ethereum as a serious contender in the long term. Some of the conservative institutions are signaling their preference for Solana over Ethereum as it navigates a way around the latter’s scalability plus security factors. This automatically takes a drive on scalability and efficiency as an L2 solution.

The 50-day SMA and 200-day SMA are $142.36 and $146.71, respectively. Meaning, SOL is already experiencing an uptrend amid the volatility of 6.44%, which is not precisely a bad number. Nearly 20 technical indicators signal a bull run, and almost 9 believe that there could be a bear run.

Daily EMA-200 indicates that this is a favorable time to buy. The weekly SMA-200 shares the same sentiment, with a value of $41.73.

Moving forward, it remains to be seen if SOL gets its ETF approved by the US SEC. The agency may adopt a more stringent approach, selectively giving a green light to some issuers. It aligns with the approval of Spot Ether ETFs, except Ether had more leniency.