Solana and major cryptocurrencies like ethereum and bitcoin are struggling with spot exchange rates. Following the drop on June 6, prices are under pressure, consolidating the position of sellers who have dominated since the end of May 2024.
Will Solana's bullish trend continue?
Still, some analysts are optimistic and expect not only altcoins to recover in the coming sessions, but specifically for Solana, one of the top five coins, to emerge as a leader in the next cycle.
In a post by x, an analyst x.com/0xGumshoe/status/1799878595432849700″ target=”_blank” rel=”noopener nofollow”>noted that, as long as the bulls maintain the current uptrend, rejecting any attempts to reach lower lows, SOL will continue to float upwards.
<img decoding="async" class="size-full wp-image-304782" src="https://technicalterrence.com/wp-content/uploads/2024/06/Solana-will-change-Ethereum-and-become-Altcoin-leader-in-the.png" alt="Solana in an upward trend | Source: @0xGumshoe via x” width=”1024″ height=”587″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/06/Solana-will-change-Ethereum-and-become-Altcoin-leader-in-the.png?w=3415 3415w, https://technicalterrence.com/wp-content/uploads/2024/06/Solana-will-change-Ethereum-and-become-Altcoin-leader-in-the.png?w=640 640w, https://technicalterrence.com/wp-content/uploads/2024/06/Solana-will-change-Ethereum-and-become-Altcoin-leader-in-the.png?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/06/Solana-will-change-Ethereum-and-become-Altcoin-leader-in-the.png?w=980 980w, https://technicalterrence.com/wp-content/uploads/2024/06/Solana-will-change-Ethereum-and-become-Altcoin-leader-in-the.png?w=1536 1536w, https://technicalterrence.com/wp-content/uploads/2024/06/Solana-will-change-Ethereum-and-become-Altcoin-leader-in-the.png?w=2048 2048w, https://technicalterrence.com/wp-content/uploads/2024/06/Solana-will-change-Ethereum-and-become-Altcoin-leader-in-the.png?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/06/Solana-will-change-Ethereum-and-become-Altcoin-leader-in-the.png?w=1140 1140w, https://technicalterrence.com/wp-content/uploads/2024/06/Solana-will-change-Ethereum-and-become-Altcoin-leader-in-the.png?w=3000 3000w” sizes=”(max-width: 1000px) 100vw, 1000px” data-recalc-dims=”1″/>Solana in an upward trend | Source: @0xGumshoe via x
It is noteworthy that this will continue the trend seen since most of the second half of 2023, when the coin emerged from obscurity to become one of the best performers, surpassing even bitcoin. Looking at the daily chart, SOL is up 100% from the January 2023 lows and about 8x from the September 2023 lows.
Although there has been a cooldown after the rally to $210 in March 2024, the bullish trend remains. So far, SOL is down 25% from March highs, and prices are retesting a key support trend line. As the bulls sink into selling pressure, attempting to reject the June 6 bears and keep prices above $160 will be crucial.
x/0uXphLM6/” rel=”nofollow noopener” target=”_blank”>x/0uXphLM6/” alt=”Solana price has a sideways trend on the daily chart | Source: SOLUSDT on Binance, TradingView” width=”1233″ height=”592″/>Solana price has a sideways trend on the daily chart | Fountain: x/0uXphLM6/” target=”_blank” rel=”noopener nofollow”>SOLUSDT on Binance, TradingView
Although technical candle formations support this bullish outlook, there are favorable developments from the fundamental side of the equation.
Solana finds adoption, but will regulators crack down?
More and more financial institutions are integrating Solana to future-proof their offerings. So far, PayPal, Visa and Stripe are supported by Solana.
Most importantly, by integrating Solana, they recognize the need to adapt to rapidly changing user preferences, most of whom are looking for cheaper and faster transactions. Solana has a theoretical throughput of up to 65,000 transactions per second (TPS).
Meanwhile, although ethereum has the largest network, it can only process 15 transactions per second, which negatively affects transaction fees. Depending on network demand, transferring tokens or executing smart contracts on ethereum can be expensive. Rates fluctuate and at one point rose to more than $50, according to YCharts data.
Although Solana is quickly becoming an option for institutions and meme coin implementers, there are ongoing challenges. In lawsuits filed by the United States Securities and Exchange Commission (SEC) against Binance and Coinbase, the regulator alleges that Solana is an unregistered security.
At the same time, unlike btc and eth, SOL, which is listed on the CME market, lacks a developed futures market. This absence, considered when the US SEC wants to approve an exchange-traded fund (ETF), can take years before the product becomes operational.
