Solana (SOL) has experienced a significant price surge of more than 35% from its June low, signaling potential gains in the coming weeks. This rise in price has been accompanied by the formation of a rare pattern on the daily chart, suggesting bullish momentum for SOL. Public companies such as Bit Mining, Upexi, and DeFi Development Corp have all increased their holdings of SOL tokens, indicating growing interest in the blockchain’s staking rewards.
Furthermore, Solana is becoming a prominent network for real-world asset tokenization, with a recent partnership between the Solana Foundation and R3 aiming to integrate the blockchain for asset tokenization. This development, along with a spike in daily active addresses on the Solana network, suggests increasing user engagement and potential future growth for SOL.
Technical analysis also supports the bullish outlook for SOL, as the token has recently formed a golden cross on the daily chart. This pattern, which occurs when the 50-day moving average crosses above the 200-day moving average, is seen as a positive sign by traders. Additionally, a cup-and-handle pattern has been identified, with a potential price target of $248 if the current uptrend continues.
However, it is essential to note that the bullish scenario for SOL would be invalidated if the price falls below the support level at $156. This level marks the lower end of the handle in the cup-and-handle pattern. Overall, the combination of bullish technical indicators and positive market developments suggests that SOL could continue to see gains in the near future.
It is important to remember that this article is for educational purposes only and does not constitute investment advice. Traders and investors should conduct their own research and analysis before making any financial decisions.