A combination of technical and fundamental catalysts has helped SOL price to reach its highest price in just three weeks.
Solana ( SOL) increased at the end of September. 13 in line with similar gains in the overall market for crypto that was driven by Bitcoin ( BTC) and Ether ( ETH).
In the daily chart, SOL’s price jumped over 40% to reach $39, which is its highest price in three weeks. The token’s gains on the intraday chart came in the form of an extension of a rising trend which has seen its price rise by 30% in just two weeks.
Comparatively with Solana, Bitcoin and Ether were underperforming, only registering 22% and 16 percent gains over the same time. Let’s take a look at the mixture of fundamental and technical factors that could have led SOL to rise.
Helium’s merger with Solana
On August. 30th, the core developers of Helium Network announced that Helium Network which provides the coverage of 5G wireless networks that is decentralized by allowing users to become hotspots, unveiled an idea for governance that would move onto the Solana blockchain, which is a different version of the chain.
The Helium developers pointed out the “need to improve operational efficiency and scalability” as well as identifying Solana as a perfect fit.
SOL represents the stake, transaction and payment token within the Solana ecosystem.
The most recent buying period of the Solana market also coincided with increases in its non-fungible token (NFT) measures.
It is worth noting that the volume across NFT marketplaces such as OpenSea, Metaplex and Magic Eden has surpassed 1.2 million SOL (~$42.8 million) during the week of September. 11, the data collected by Nansen indicates. The increase was accompanied by a spike of NFT transactions, which reached an all-time high of more than 1 million over the same timeframe.
The increase in activity at Solana was seen as a distinct positive sign within the NFT sector that has been experiencing less demand in recent months. For example, the amount of transactions at the most reputable NFT market Open Sea has experienced dramatic decrease.
In every Solana NFT collections, the recently-launched “y00ts mint t00b” collection has recently racked up the highest trading volume in the Hyper Space collection, being the highest, putting the highest average of about $18.45 million per day.
Technical bounce of SOL
From a technical point of view The SOL rally of 30% began after testing a substantial support area.
SOL/USD was consolidating in a sideways manner within a range defined two trendlines parallel to each other since the 23rd of May. A decline towards the trendline’s lower end (support) is typically followed by a 58%- 60% bounce towards the upper trendline (resistance).
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Similar to a retreat from the trendline’s upper edge has seen the price of SOL fall to the lower trendline as illustrated below.
With SOL recovering the direction of resistance seems to be towards the upper trendline , around $47.50 up by 38% from its current levels.