The Solana price continues to outperform as interest in the Ethereum-killer rises. The SOL coin has jumped by more than 20% in the past 24 hours, bringing its total market capitalization to more than $39 billion. This means it only needs a small increase to get to $40 billion.
Why is Solana rallying?
There are several reasons why the SOL price is rallying. First, this rally is part of the overall bullish trend of most cryptocurrencies. Bitcoin is attempting to retest the key resistance level at $50,000 while Ethereum is just a few points below $4,000. Therefore, this rally is mostly because of the correlation that exists among cryptocurrencies.
Second, Solana is rallying because of the renewed interest in Ethereum-killers. These are blockchain projects that are seeking to improve on the technology behind Ethereum. They are faster and have scalable and interoperability features. Others that have rallied recently are Hadera Hashgraph, Polkadot, and Avalanche.
Third, the Solana price has exploded simply because of the fear of missing out (FOMO). A quick look at key social media platforms like StockTwits and Reddit shows that Solana is one of the most mentioned.
Similarly, the number of people searching for the platform in Google has increased. Therefore, with its price rising, many investors have rushed to invest in the coin for the fear of being left behind.
Finally, on-chain data shows that more developers are moving to the platform. The most recent trend is that of non-fungible tokens (NFT). The developers moved to the so-called degenerate apes, which sold out in less than 10 minutes.
Solana price forecast
The daily chart shows that the Solana price has had a parabolic rally recently. This rally got supercharged when the coin moved above the key resistance level at $58, which was the highest level on May 19. As that happened, more investors took notice and piled into the coin. Today, it is trading at $142, which is slightly below the key resistance of $150. The RSI also shows that it is the most overbought it has been ever.
Therefore, while the bullish rally may continue, I suspect that the coin will soon have a major pullback as investors start exiting their trades. In the long-term, however, the coin will keep rising, with the key target being at $200.