Solana comeback? Moving averages keep bullish hopes alive

Solana price is down 16.8% from its year-to-date high as recent crypto momentum fades.

Solana (SOL) traded at $220 on Sunday, pushing its market cap to $105 billion and making it the fifth-largest cryptocurrency.

SOL has multiple catalysts that could push the price higher in the long run. It has become the biggest rival of Ethereum (ETH), the world’s largest blockchain.

According to DeFi Llama, its total value locked has increased by 18% in the last 30 days, bringing its total assets to over $9.12 billion. There are approximately $30 billion worth of stablecoins in its ecosystem.

Solana has also become the largest player in the Decentralized Exchange industry. Its seven-day volume stood at over $29.7 billion, higher than Ethereum’s $21 billion. The largest Solana DEX networks are Raydium, Orca and Meteora.

Solana has a large share in the Decentralized Public Infrastructure and meme coin industry. While DePIN networks like HiveMapper and Helium are doing well, all Solana meme coins have a market cap of over $19 billion, led by Dogwifhat, Bonk, Peanut the Squirrel, and Popcat.

HiveMapper aims to be a better mapping solution than Google Maps. According to its website, it has already mapped nearly 17 million kilometers of roads and has a global coverage of 29%. Helium is disrupting the wireless industry by building a decentralized network.

Meanwhile, expectations are high that the incoming Trump administration will loosen crypto regulations and potentially approve a spot SOL ETF. There is a possibility that such a fund will attract institutional capital, as we have seen with Ethereum, which has attracted over $2.26 billion in inflows in the past few months.

Solana price analysis: bullish patterns form SOL price chart | Source: crypto.news

The daily chart shows SOL price rising to $264.40 on November 22. It retreated to $220, but fell and retested the critical support level at $205 – the highest swing and upper side of the cup from March this year. model.

The C&H pattern consists of a horizontal line and a rounded bottom and is a popular bullish continuation sign. Solana also remained above the 50-day moving average; This is a sign that the bull market is still there.

It formed a falling wedge formation, which is a popular bullish sign. Therefore, the cryptocurrency is likely to show a strong uptrend in the coming weeks. The first target will be $264, the year-to-date high, followed by $400.