The past week has witnessed remarkable performances from key players, with Bittensor leading the pack with a staggering 70% surge, closely followed by Helium at 37%, and Solana, not far behind, boasting a notable 25% gain, as reported by Santiment. Interestingly, this surge in alternative cryptocurrencies has coincided with a decreasing social volume for Bitcoin as traders increasingly turn their attention to speculative altcoins.
Solana, in particular, has been making waves as its prices recently breached the $100 mark, marking a significant psychological milestone. The cryptocurrency experienced an 8% surge in less than 24 hours, reaching $106.53 yesterday. Over the course of the past month, SOL has rallied impressively, showcasing a remarkable 30% gain since dropping below $80.
Analysts have closely examined the situation, with William Noble, Director of Research and Content Development for Emerging Assets Group, emphasizing that the $100 level doesn’t automatically translate into a meaningful resistance point. Instead, Noble suggests that the breakthrough is linked to the growing realization that Bitcoin ETF players and crypto hedge funds may need to acquire substantial amounts of BTC and SOL.
Grant Tungate, Senior Analyst of Systematic Trading for Blockforce Capital, provided additional insights, highlighting Solana’s flag pattern formation over the past month. Tungate sees the recent move as an initial breakout and anticipates a trend high in the coming weeks, with a key level at approximately $126.
Zooming out, Tungate acknowledges that Solana has significant potential for growth, with a possible return to all-time highs at $267. However, he also cautions that a failure of the pattern could lead to a retest of the previous week’s low, potentially testing the 100-day moving average around $72.50.
Solana’s January Transaction Volume Soars
Meanwhile, Solana’s blockchain has experienced a surge in transaction volume during January, as The Block’s Data Dashboard reported. The transaction volume for SOL and SPL tokens on the Solana network has reached a remarkable $951.9 billion, showcasing a 30% increase in economic throughput compared to December’s volume of $735.8 billion.
This surge in transaction activity on the Solana blockchain significantly surpasses levels observed in 2023 and most of 2022, underlining the growing prominence and economic activity within the Solana ecosystem.
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