According to Cointelegraph: Crypto enthusiasts are noting an upswing in the price of Solana (SOL) today. The hike, which sees a 4% increase in the last 24 hours, appears underpinned by both technical factors and robust on-chain metrics hinting at a bullish future for SOL.
Resting at $159, SOL enjoys a 32.6% leap from its week-ago low around $120. Over the past six months, the smart contract token boasts a hearty 88% growth, while year-to-date gains stand at 56%. With a $70.6 billion market cap, SOL ranks as the fifth largest crypto by market value.
The Key: Superior Network Performance
The Solana network holds its own in the heavily competitive Layer 1 sector. Data from on-chain metrics platform Artemis reveals that Solana handles over 30% of daily transactions across all primary Layer 1 and Layer 2 networks. As a result, Solana outperforms other top Layer 1 protocols concerning transaction fees. The Block Pro declares, "Solana's total transaction fees have soared by approximately 417%."
Another noteworthy performance gauge is the total value locked (TVL) in the network's smart contracts. DefiLlama data shows a TVL rise from $3.36 billion on April 18 to $4.02 billion on April 23 – a 19% growth. This increase intertwines with SOL's price hike of over 15% during the same period.
The April 23 Solana price rally continues a recovery trend initiated post SOL finding support at the $130 demand level from April 17. SOL is currently regaining a crucial support level marked by the 50-day exponential moving average (EMA) at $156.42.
Daily candlestick closure above this level indicates the bulls' capacity to maintain the upsurge. The MACD’s cross seen on April 23 signals a potential buy, suggesting SOL may be undervalued, primed for a rebound. If so, SOL/USD could eye a 28% recovery toward the $202 v-shaped recovery pattern neckline soon.
On the flip side, falling below the 50-day EMA increases the correction risks toward its 100-day EMA support at $139 or the base of its governing chart pattern at $125.
