In the last seven days, several digital assets have set new peak prices. Bitcoin and altcoins have been rising similarly. This has been the usual trend in recent times – altcoins following a similar trend as the king coin. Meanwhile, bitcoin’s 7-day and 24-hour charts are ambiguous. Hence, its exact trend direction is undeterminable.
SOL Has Been Showing Bullish Tendencies
Hence, altcoins followed the bitcoin to go on a decline between May and July. Now, they are following it as it is rallying. Also, when the king coin shot past the $50K mark in the last seven days, most altcoins were setting new all-time highs. SOL has also been rallying, but it is now making waves in the market right now.
Just a few hours ago, it surged past $100 for the first time. However, SOL’s price action doesn’t surprise experienced traders. It has shown the tendency to embark on a solid rally for some time now. Hence, the hike in price was inevitable.
Furthermore, various institutional investors have been investing in it this past week, especially in Solana-built NFTs and DeFi smart contracts. Even though SOL set a new peak price, other altcoins that showed appreciable gains within the period under review were IOTX and ADA.
IOTX surged by over 390%, while ADA also attained a new peak price. A few others that are indicating strong rallies are XRP, MATIC and TRX. The good news is that several others are displaying strong bullish tendencies for fundamental reasons.
For example, Cardano’s Alonzo update is set to make it a strong Ethereum competition. Thus, ADA price is rising to this effect. Also, kava’s upgrade is expected to impact its governance token positively.
Solana’s Rising Rank
The latest CoinMarketCap data showed Solana overtaking Polkadot, Chainlink, Bitcoin Cash, Uniswap and Litecoin in terms of value. It now ranks eighth among the top 12 virtual assets, and its 35% gain in the past week makes it the best performing digital asset among the top 12 digital assets.
Also, its market cap has increased to move it closer to Dogecoin’s market cap. SOL’s price has been rallying since January this year, it started the year at $1.5, and a few hours ago, it surpassed $100. This month alone, its price has risen by over 190%, and its market dominance has increased to that effect.
Most investors increased their SOL investments based on their experience of Solana’s speed and cheaper transaction charges. Analysts from top crypto analytics firm, amber group, forecasts that more NFT involvements for Solana would mean more price rally for its governance token. The analysts further opined that unless the entire crypto market crashes, SOL might hit its next key resistance of $146.
However, some analysts suggest that the blockchain’s introduction of an event called ‘ignition’ might be responsible for SOL’s bullishness. While Solana didn’t provide any details about this event, the blockchain’s video preview gives the assumption of a burn event. Often, token burns reduce token supply, which creates a demand and a price increase.