Solana (SOL), the fifth-largest digital asset, has registered a 16% weekly rally. The surge in Solana comes amid a drawdown in the broader crypto market following Bitcoin’s recovery. Major cryptocurrencies like Ethereum (ETH) and Binance Coin (BNB) are currently in the red zone, raising questions about what might be driving the Solana rally.
Factors Fueling the SOL Surge
Per CoinMarketCap data, SOL is trading at $150.13, up by 2.18% in the past day and 16.07% in the past week. The market cap has increased to $70.3 billion, while the 24-hour trading volume rose 22.8% to $2.8 billion.
Solana could be on its way to a major rise from its current price, potentially propelling it to a new all-time high if the uptrend persists. One major factor contributing to the price increase over the past week was the recent Solana Breakpoint Conference in Singapore. The event concluded successfully with announcements of upcoming ecosystem developments.
Additionally, the surge in the growth of Solana-based memecoins has contributed to the success of the blockchain. Some of the best memecoins on Solana, including Bonk (BONK) and Dogwifhat (WIF), have surged easily to over a $1 billion market cap. BONK’s market capitalization is $1.3 billion, whereas WIF’s is more than $1.9 billion.
Bullish Forecasts for Solana
The coin’s price has continued upward since it broke out of a double-bottom bullish reversal pattern on September 19. Currently, SOL is trending above the 200-day Simple Moving Average (SMA), indicating bullishness. Price prediction for Solana suggests that the coin has an additional 8% upside potential to reach $165, the next key resistance level.
If the sentiment remains bullish, the cryptocurrency could surge by 14% to reach $187 or even higher. However, based on previous price patterns, this move depends on Solana closing the daily candle above $161.
Meanwhile, Derivative traders are increasingly bullish on Solana, as observed in their trading activities. There are over $210 million in aggregated longs against $131 million in shorts across Binance, Bybit, and OKX exchanges.
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