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Solana (SOL) has, in the last seven days, gained nearly 10% in price, helping the coin flip the $220 resistance level. In the last 72 hours, Solana has found stability above this price level, leading to bullish sentiment. The coin’s technical indicator is also hinting at more growth.
Solana trading volume poses breakout concern
Notably, Solana has confirmed a golden cross on its technical chart, which suggests a bullish rally might be underway. A golden cross occurs when a short-term moving average crosses above a long-term moving average. This occurrence for Solana could trigger an increase in its price.
With SOL finding stability above $220, this bullish technical signal could catalyze an increase in buying pressure from investors. Additionally, the market rotation favors altcoins, and this could serve as another incentive to invest in Solana.
However, for SOL’s price to witness a massive breakout, it needs a corresponding volume boost. As of press time, Solana’s trading volume remains in the red zone, down by 3.42% at $9.02 billion in the last 24 hours. Meanwhile, SOL is changing hands at $227.09, which represents a 1.7% increase within the same time frame.
In order for Solana to maintain its stability above the $220 level and hit new highs, Solana bulls need to step in and support the price outlook.
Solana Alpenglow influence
Recently, the Solana blockchain has been busy with billions of transactions. In August, Solana registered 2.9 billion transactions, eclipsing its rival, Ethereum. Solana’s August count represents Ethereum’s total since its launch in 2015. This suggests that Solana has what it takes to support a rally.
Meanwhile, validators on the blockchain have given the go-ahead for activation of the Alpenglow upgrade. The upgrade will make Solana the fastest layer 1, as it will reduce transaction finality to below 150 milliseconds.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team