Solana price picked up from where it closed yesterday to begin trading in the new month on a high. At the time of writing, Solana was higher than its price yesterday by 2.55%, to trade at a 6-day high of $207.807. Solana has been on a prolonged uptrend since September 22nd, with intermittent dips.
Market momentum and Ethereum to provide growth impetus
Solana’s upsurge has been driven by the widespread belief that it has what it takes to take on Ethereum. Ethereum is, of course, still significantly ahead in terms of market capitalization. However, Solana’s recent growth has seen it emerge as a credible threat to Ethereum’s dominance of DeFi and smart contracts.
Equally important, it has won over many investors and established itself as a dependable investment asset. SOL has also outgrown Ether over the past year, gaining about 13,550% compared to Ethereum’s 1,015%.
Solana’s growth is likely to be driven by its strong buying momentum in the near term and the motivation to catch up with Ethereum in the long term.
Technical analysis for Solana price
Solana price has been on a long-term uptrend, going back to September 21st. Since that time, the RSI has oscillated from lows of 44 to highs of 73 and is currently at 64. This makes it highly likely that the uptrend will continue in the near term. Based on the current momentum, support for the week is likely to come at $197.25. However, if the momentum reduces significantly, the next support could come further down at $172. 38.
On the upper side, SOL/USD has gained for three of the past four days and is likely to build on that momentum to rise further. If the bulls sustain the current momentum, the price could rise to encounter the first resistance at $203.06. Beyond that point, the next resistance is likely to be at 215.35. If the price breaches that level, it will be set to record a new all-time high.