The Solana coin became one of the two most high-profile discoveries of August 2021. For 30 days, the cryptocurrency has risen in price by 234%, and as of September 2, it is quoted at $115. The coin reached an all-time high around $130, after which it rolled back to the local support zone near $115. Altcoin showed a strong increase, but the subsequent collapse by 10% raises questions: will SOL be able to continue growing? Having analyzed the technical and on-chain indicators of the cryptocurrency, there is no doubt about the future growth of the coin.
As of 10:00 UTC over the past day, the altcoin has recovered by 3.5% and is quoted at $116. The daily trading volumes of the asset remain high in the region of $3.5 billion, and the total capitalization has reached $33.7 billion. The main technical charts of the cryptocurrency indicate a local correction that overtook the coin after setting a new historical record. The RSI indicator dived over the 60 mark, the stochastic is moving to zero, and the MACD indicates a sideways movement with a parallel accumulation of volumes. Altcoin does not show any obvious signs of weakening and bearish signals. At the same time, the coin is quoted near an important support area around $100-$110, where the coin can fall before the next stage of growth. At the same level, the 0.38 Fibonacci retracement is concentrated relative to the last upward wave. If this area is successfully held, the coin will receive a powerful impulse to continue the price growth.
The second factor that foreshadows the further growth of the cryptocurrency is the powerful on-chain activity and the level of social interest. After setting a new historical record and the subsequent fall, interest in the project did not fall. According to experts from Santiment, more than 25% of cryptocurrency topics in social networks relate to the Solana token. It also became known that the coin ranks third among the trending requests for cryptocurrencies. All this is expressed in the number of unique addresses in the SOL network, as well as the total volumes of transactions that continue to hold high positions. All this indicates that the market expects a new surge in activity and growth of altcoin. This is largely due to the active development of the project and tiny commissions, which continue to remain low, even despite the huge increase in recent years
In part, the support of the hype around the token was provoked by the statement of the developers, who promised to announce the next update in the ecosystem in the fall. Solana recently launched an NFT project that has been successful and has increased interest in cryptocurrency. A future update will likely be related to NFT or decentralized finance. One of the project leaders of the second rising star of the market, Cardano, added fuel to the fire. Charles Hoskinson said that in the future he plans to cooperate with the Solana ecosystem in the fields of economics, engineering, and science. The entrepreneur has already contacted representatives of the project to discuss the prospects for further cooperation.
And while the entire crypto community is waiting for the collaboration of the two most coveted altcoins of August, both coins continue to accumulate volume for the next bullish breakout. It will take several weeks for altcoins to set a new historical record, and the coming months will be extremely successful for the SOL and ADA projects, both for technical and marketing reasons.
