The Solana price strong rally has faded. The SOL token is trading at $67.72, which is slightly below it’s an all-time high of about $83. As a result, it has a total market capitalization of more than $20.6 billion, making it the tenth biggest coin in the world.
Solana rally fades
Solana has been one of the best performing cryptocurrencies in the ongoing altcoin rally. Indeed, its price has jumped by more than 6,135% this year and by more than 245% from the lowest level in June.
The strong recovery is mostly because of the rising optimism that more developers will shift to its platform to build decentralized applications. Some of the top projects built on Solana are8Pay, BSN, and Serum.
Serum was created by FTX and Alameda Research and is a high-speed non-custodial decentralized platform. In the past few months, Serum has transacted more than $4.3 billion and it averages about $80 million per day.
Another popular project on Solana is USDC, one of the biggest stablecoins in the world. More than $830 million USDC have been issued on Solana. Other popular projects built in the network are Audius and Cropper Finance.
Therefore, analysts believe that Solana will keep attracting more developers thanks to its speed and efficiency. Still, its biggest challenge is the dominance of Ethereum, the biggest altcoin in the world. While Ethereum is known for being slow, its developers are working to upgrade it through the ETH 2.0 process.
Solana price prediction
After staging a strong bullish rally, Solana price has paused. On the daily chart, this decline is not unusual. Besides, it was forming what looks like a cup and handle pattern. Therefore, this decline is part of a break and retest approach. The coin is still above the short and medium-term moving averages while the MACD has been in a strong bullish trend.
As such, there is a possibility that the price will resume the bullish trend as bulls target the key resistance at $100. This view will be canceled if the price moves below the key support at $35.