The Solana price has taken a deep dive in the past week. The SOL token has a total market capitalization of $19.6 billion. It is ranked as the 10th most valued digital currency in the world after Polkadot. At the time of writing, the altcoin had slipped 6.17% and was trading at $67.57.
Solana’s Fundamental Analysis
Solana has been among the best performing digital currencies in the overall crypto rally. The SOL price has jumped more than 6,565% since the start of the year and more than 200% from its lowest point in July. However, it is trading nearly 20% lower from its highest point this year.
Just like most cryptocurrencies, SOL has been recovering from a 3-month losing streak. Being one of the fastest-growing cryptocurrencies in the world, many investors have joined in on its trade, boosting its price.
Analysts have also linked the rise in the Solana price to the ongoing projects in its blockchain. Earlier on Wednesday, the real-time market data provider, Pyth Network, went live on Solana’s blockchain. The upgrade will allow developers to integrate its feeds across DeFi platforms and applications.
Another project on Solana is Serum, created by FTX and Alameda Research. Serum is a high-speed non-custodial decentralized platform. In the past few months, the project has brought in more than $4.3 billion, which averages to about $80 million per day.
Analysts believe that Solana’s speed and efficiency will keep attracting more developers. However, Ethereum’s dominance remains a big challenge for the SOL coin.
Solana Price Outlook
The daily chart shows that the Solana price has eased its month’s rally. It hit an intraday high of $74.075 before pulling back.
It is trading above the 50 and 200-day moving averages, which is a bullish indicator. Its Relative Strength Index (RSI) is higher at 63, reinforcing the bullish view further.
Therefore, there is a possibility that the SOL price will face a minor pullback before reversing. The bulls will be targeting the key resistance at $100. However, a move below the support at $35 will invalidate this view.