According to CoinPedia’s technical analysis, SOL has experienced a significant price surge leading to the breakout from an inclined resistance level it has been faced since March 2024. Previously, whenever the asset’s price approached this level, it experienced selling pressure and a price decline.

However, with the sentiment changes and the breakout of this level, his breakout, there is now a strong possibility that SOL could soar significantly and reach its all-time high of $259.90 in the coming days. Currently, the asset is trading above 200 Exponential Moving Average (EMA) on a daily time frame, indicating an uptrend.

In addition to this breakout, SOL’s upward rally could gain further momentum if it closes a daily candle above the $205 level, unless it may take longer to reach its all-time high.
Bullish On-Chain Metrics
On-chain metrics further support this bullish outlook. According to the on-chain analytics firm Coinglass, SOL’s Long/Short ratio stands at 1.05 at the time of writing, indicating strong bullish sentiment among traders.

Additionally, SOL’s open interest has jumped by 18% over the last 24 hours, further indicating a bullish outlook. An increase in open interest suggests that derivative traders are building new positions, anticipating either a rally or decline depending on market sentiment.
By combining on-chain metrics with the technical analysis, it appears that bulls are currently dominating the asset and could help SOL reach its all-time high in the coming days.

Current SOL Price
As of now, SOL is trading near $186 and has experienced a price surge of over 12% in the past 24 hours. During the same period, its trading volume skyrocketed by 185%, indicating heightened participation from traders and investors following the breakout.$SOL

The CEO of Ark Invest has made an extremely bullish statement about Solana (SOL) amid a notable upsurge in the asset’s price.

Cathie Wood, the CEO of Ark Invest, a leading investment management firm, seems to have stirred up the altcoin market, particularly igniting SOL bulls to kick off a bullish rally.

In a recent interview with CNBC Squawk Box, interviewers posed a question centring on Bitcoin’s dominance in the cryptocurrency and blockchain markets. The interviewer was curious to know if there are any alternative blockchain applications, other than Bitcoin, that the firm is currently focused on.

In response, Wood asserted that Ethereum (ETHER) and Solana (SOL) are some of the most promising networks in the market. ARK Invest is already focusing on Ether and its position in the market as a leader in smart contract adoption and Decentralized Finance (DeFi). 

However, Wood is even more convinced that Solana is outpacing Ethereum as a blockchain network with its structural advantages. 

“There are infrastructure players,” she remarked. “Solana is doing a really good job. If you look, Ether was faster and cheaper than Bitcoin back in the day; that’s how we got Ether. Solana is even faster and more cost-effective than Ether. So there is infrastructure at play. We do believe Web3 digital assets are big ideas.” She asserted. 

Solana (SOL) has since surged following super-positive developments. SOL saw a 12% increase in its daily gains as market sentiments have become even more bullish as bulls eagerly look forward to a $100 price point. At report time, SOL is trading for $62.

Notably, SOL is the highest-performing altcoin within the top 10 category, with monthly and weekly gains sitting at 187% and 46%, respectively. Market cap and trading volume are also in the green zone. 

Meanwhile, Wood remains just as bullish on Bitcoin as in previous times. Pushing back on the narrative that a “Bitcoin 2.0” might be in the works, she explained that market players have already tried and failed.

Although it was noted that a handful of traditional investors are still yet to grasp the concept of Bitcoin fully, Wood insists that the Bitcoin network has revolutionized the concept of money.

As she further explained,

“I think most people understand that Bitcoin is the money revolution. This is the first global, private, digital-rules-based monetary system in history.”

Cathie Wood, the Founder, CIO, and CEO of ARK Investment Management, LLC, recently appeared on CNBC’s “Squawk Box” to discuss ARK Invest’s new venture into the crypto space. In collaboration with 21Shares, ARK is launching five new ETFs this week on Cboe Digital. These ETFs are a mix of Bitcoin futures and cash, Bitcoin futures and Ethereum futures, and a broader range of Bitcoin and equity-exposed companies​​.

During the interview, Wood highlighted the significant roles of Ethereum and other infrastructure players like Solana in the blockchain space. She emphasized that while Ethereum was initially faster and more cost-effective than Bitcoin, Solana has now surpassed Ethereum in these aspects.

Solana’s advantage over Ethereum

Understanding the technological underpinnings helps explain Solana’s advantage over Ethereum. Solana is known for its rapid transaction processing, achieving this with a unique Proof of History (PoH) and Proof of Stake (PoS) consensus mechanism. This combination allows Solana to process up to 65,000 transactions per second (TPS), making it highly efficient for real-time applications. In contrast, Ethereum initially used a Proof of Work (PoW) method, facing speed and congestion issues. Its upgrade to Ethereum 2.0, moving towards PoS, aims to improve scalability and transaction speed but is still in progress​​.

In terms of scalability, Solana’s architecture is designed to handle a high volume of transactions efficiently, leveraging PoH and PoS for high throughput and parallel processing capabilities. This makes Solana suitable for applications requiring large transaction volumes. Ethereum, on the other hand, struggled with scaling due to its PoW consensus but is transitioning to Ethereum 2.0 with a PoS mechanism and shard chains to boost scalability and reduce congestion. This transition is expected to enhance Ethereum’s scalability significantly, but the full realization of these benefits is pending​.

Recent crypto rally

Cathie Wood’s statement comes at a time when the crypto market witnessed a resurgence, with the total market capitalization soaring to over $1.4 trillion. The turnaround comes amid expectations that U.S. regulators will soon approve an exchange-traded fund that invests in the cryptocurrency. This growth represents more than a 60% change from one year ago— according to CoinGecko. 

Solana’s native token, SOL, has also seen a 51.7% price increase in the last 14 days, complementing a two-week upward trajectory, according to CoinGecko. On the other hand, Ethereum broke the $2,000 price mark in the last 14 days and increased by 10% during this period. Both digital assets haven’t reached their all-time highs yet, but the recent surge signifies a shift in market sentiment. 

Notably, Bitcoin broke the $30,000 psychological threshold. However, the coin’s price remains 48% down from its all-time high (ATH) set on November 10, 2021.  Traditionally, a rise in Bitcoin’s price suggests investor preference for the stability and security associated with Bitcoin, especially during market uncertainty.

Federal Reserve actions and macro conditions 

Looking at the broader economic context, the Federal Reserve’s actions have influenced the crypto market. The Fed has since engaged in the fastest hiking cycle in 40 years to control inflation, shifting investor sentiment towards cryptocurrencies. In addition, the U.S. Federal Reserve initiated a significant program to oversee banks’ activities in the cryptocurrency sector in August.  This program doesn’t introduce new rules for crypto banking but clarifies how the Fed will conduct its oversight. 

Under this “novel activities supervision program,” experts in digital assets will work with regular supervisors to oversee transactions involving cryptocurrencies, particularly focusing on stablecoins. Banks must gain preapproval for activities involving stablecoins, demonstrating their ability to manage associated risks, including vulnerabilities to money laundering, customer runs, and hacking threats​​.

The Fed’s announcements reinforce earlier crypto guidance and are aligned with their intention to maintain a substantial barrier between traditional banking and the crypto sector. However, they also encourage banks to continue experimenting with digital assets under close supervision. This approach aims to balance innovation in financial services with regulatory oversight. The level of supervision will vary depending on each bank’s level of engagement in these novel activities, ensuring that the regulations and supervision foster innovations that improve access to and delivery of financial services.

In a recent surge, Solana’s native token, SOL, has experienced a significant uptick, climbing by over 46% in the last 7 days.
This builds on an impressive trend, with SOL marking a 46% increase over the past week and a remarkable 160% surge in the last month. As of now, SOL is priced at around $63, reflecting the bullish sentiment surrounding the cryptocurrency.
One contributing factor to SOL’s positive valuation is the overall bullish condition prevailing in the cryptocurrency market.
Notably, major players like Bitcoin (BTC) and Ethereum (ETH) have also reached yearly peaks, indicating a broader upward trend.
The influx of institutional investors into Solana’s ecosystem is another noteworthy catalyst. Recent research conducted by CoinShares reveals that Solana witnessed substantial inflows amounting to around $16 million in the last 14 days. This institutional interest adds a layer of credibility to Solana’s growth story.
The Fear of Missing Out (FOMO) effect is a psychological phenomenon that can’t be overlooked in Solana’s recent surge.
This phenomenon often triggers irrational decision-making as investors fear missing the potential gains associated with a highly popular coin.
In Solana’s case, the impressive price increases might have enticed some investors to join the ecosystem without thorough due diligence.