Solana Continues to Rise | What is Driving SOL Token’s Price Higher?

The current crypto bull run does not seem to stop. The trillion-dollar market has finally started to push higher after a major correction and a consolidation. Based on the price action, of course, it was certain that the markets are going to reverse to the upside within a quarter or so. And surprisingly, few cryptos not only transited from a downtrend to an uptrend but made new all-time highs. With the momentum getting stronger every step of the way, it is possible for the prices to skyrocket, replicating the bull run that came in the beginning months of 2021.

Though several altcoins are booming lately, very few are outperforming the altcoins market itself. Solana (SOL), the blockchain project known for its powerful technology and fundamentals, has taken a massive lead in the price market.

SOL, the native token of Solana, that was trading at the recent lows around $25, is now worth close to $77, as on the writing. The crypto has risen a whopping 200% since the crash in mid-May. Interesting, SOL cryptocurrency is one of the very altcoins that did not turn into a downtrend despite the crypto crackdown in the month of May – clearing proving that the bulls are really into this project.

Solana into the Top 10 Bucket of Market Cap

The past few days have been special for Solana and their native cryptocurrency. Not only has it become one of the first ones to make an all-time high, but it has joined the top 10 crypto market cap club.

The SOL crypto that was struggling in the top 25 for the longest time has finally surpassed Uniswap (UNI) to take the number 10 spot with a market cap of $22 billion. In fact, it Is only a billion-dollar away from jumping to the 9^th spot overtaking the Polkadot token as well.

Crypto Bull Run Pushes Solana Higher

The cryptocurrency market is very well known for its ever-lasting positive correlation coefficient. Be it for any reason; the entire crypto market continues to follow a similar trend and trajectory. As a result, it also becomes helpful in performing correlation analysis to understand the assets leading and lagging in the market.

The current push to the upside in Solana is undoubtedly coming from the interest in buying the crypto. But an additional propel comes from the entire cryptocurrency market making a move to the upside. In other words, the buying sentiment in the crypto market as a whole has helped SOL crypto to head much higher.

Degenerate Ape Academy Overloaded Demand Causes Failure

Non-fungible tokens (NFTs) have been recently booming in the crypto space. Several NFT projects are based on existing blockchain projects are in the spotlight. And Solana is also part of this game.

Lately, the Degenerate Ape Academy NFT-themed platform has seen a massive surge in demand. Essentially, it is a platform where users can mint the Ape-based NFTs. And the cost of minting each Ape was fixed at 6 SOL.

The demand for minting surged to the extent that the system failed due to overloaded demand. However, on the second attempt, a total of 10,000 NFT Apes were minted and went sold out in less than ten minutes.

With the involvement of Solana in the NFT project, the demand for SOL crypto also kicked in – which is evident from price action.

The Solana Ecosystem Continues to Thrive

The solo Solana project has seen several integrations over the years. Not only has it seen steady growth in its ecosystem, but it has been thriving in recent years.

For instance, the 1 million monthly listeners music streaming crypto project – Audius has now been moved to the Solana ecosystem. Moreover, the recent partnership of Audius with TikTok has driven the market cap of its native token to $1 billion.

SOL Says goodbye to the $58 ATH

It is an easily acceptable fact SOL is currently the best cryptocurrency – at least in the top 25 highest market cap cryptos. And the percentage return alone proves the stated fact. Solana token is the only crypto to surge over 250% in the current bull run mania.

Coming to the price chart analysis of Solana, the very first technical point we notice is that this crypto never was in a downtrend. While several cryptos went into a downtrend, making lower lows and lower highs, the below-shown crypto was in a simple retracement after an impulsive uptrend move.

The latest Support & Resistance level was formed at $28 after making an ATH to $58. In mid-May, the seller’s push south got the prices down to the S&R, but the buyers bought it back up almost instantly. Later, the market began to consolidate between $28 and $42.

And finally, as the entire crypto market started to kick-off to the upside, SOL broke through the range and made a new ATH all the way up to $80.

Given the strength of buyers in the market, and the sentiment of the crypto market being extremely bullish at the moment, it would of no surprise to see Solana continue to propel higher.

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