Solana attained an all-time high of $264 for the first time ever. The altcoin latest milestone did not go unnoticed by the crypto community.
Many proponents went on comparing the asset to its biggest rival. Others celebrated latest milestone with giveaways. While its “haters” laid several accusations.
One such is the founder of YCC. He said, “Nobody scammed retail more than Solana. SOL’s market cap almost doubled, yet its price still did not make an ATH. This is the definition of inflation—a hidden tax every Solana fanboy pays.”
Nonetheless, the altcoin is not close to its ATH at the time of writing. It opened trading at $256 but dropped to a low of $251 before rebounding. It shot up to above $260 for the first time in years, hitting a high of $264. Currently trading at $255, it is trading a bit lower than its opening price.
Why Did SOL Surge?
The latest surges come after the asset saw a flurry of institutions file for its pot ETFs. Canary Capital, 21Shares, VanEck, and Bitwise are all requesting clearance for spot Solana ETFs. According to recent sources, S-1 applications for these ETFs are purportedly being processed by the U.S. Securities and Exchange Commission (SEC).
The cryptocurrency is currently experiencing the rush Bitcoin had between December and January. Many anticipate more increases as the odds of approval surge.
Nonetheless, other factors, like network growth and an increase in active users, contributed to the latest milestone.
SOL is one of 2024 best-performing altcoins, rising by 160% over the last ten months. Its 24-hour trading volume increased by 58% to surpass $11 billion, and its market value has increased to $124 billion.
Fresh investors are flocking to the crypto market to trade memcoins. Solana sees most of the attention as it boasts thousands. Such an influx has caused strong financial activity; on November 19, the blockchain recorded $5.92 million in revenue and $11.84 million in total transaction fees.
Why did Solana Decline?
The asset undoubtedly received massive selloffs following its ATH. The bulls failed to sustain the momentum following the flip.
The onchain metric sheds light on the reason for the decline. Solana sees dwindling network activity. Total transactions from DEXes exceeded $15.2 billion during the previous day, but they are less than $15 billion at the time of writing.
CryptoQuant shows that the relative strength index is at 77. The metric is currently negative as SOL is overbought and may see a trend reversal in the coming days. The one-day chart shows the same reading as the onchain metric. The RSI surged above 70 on Nov. 17 and has since remained above it. It maintains the same trend at the time of writing, hinting at further declines.
Nonetheless, the downtrend may be minimal as other indicators are positive. The 50-day moving average intercepted the 200-day MA in a golden cross, and the asset is gearing up for further surges.
The moving average convergence divergence continues to print buy signals. Its 12-day EMA is on the uptrend and shows no signs of halting. The 26-day EMA shows the same trend. This is the same pattern on the momentum indicator.
