Key Points
- Solana recently flipped Binance Coin to become the fifth-largest crypto by market cap after a 24% weekly rally.
- Daily trading volume surged 84.5%, which shows rising investor confidence and strong liquidity.
- Analysts predict a possible breakout past $220 if Solana holds its current traction above $200.
Solana has surged into the spotlight after a sharp price rally pushed it past Binance Coin (BNB). SOL is now the fifth-largest cryptocurrency by market capitalization.
The bullishness comes from substantial trading volumes and more institutional investors now showing interest in the asset. When writing, Solana was trading near $199.43. This was recorded after gaining over 24% in the past week and 5.26% in the last 24 hours..
Solana’s Rally And The Ranking Shakeup
This recent rally puts Solana firmly back in focus. This happened after the cryptocurrency peaked at $189.35 recently and quickly recovered.
Solana has tested resistance near $204 and is hovering just under the psychologically important $200 mark. These levels now serve as short-term support zones that could hold firm if the ongoing traction continues..
Trading volume has followed the price action according to CoinMarketCap. Solana’s 24-hour volume jumped by 84.5% on 22 July, reaching nearly $14 billion. That surge in activity shows a great deal of interest, and a renewed belief in Solana.
So far, the volume-to-marketcap ratio now stands at 13.08%, a sign of healthy liquidity. This metric often correlates with incoming breakouts.
Many traders are watching for a confirmed break above $204. If this happens, it could set the stage for Solana to run toward the $210 mark, or even higher.
Solana’s Technical Momentum Signals Caution and Opportunity
From a technical standpoint, Solana is very positive. The MACD (Moving Average Convergence Divergence) is firmly bullish, with the MACD line well above the signal line. This crossover indicates that buying interest is still growing.
In addition to this, there is an incoming golden cross between the 50 and 200-day exponential moving averages (EMA). This indicates that a push towards the upside could come hard and fast.
The Relative Strength Index has reached 81.04, which means that Solana is now in overbought territory. Historically, consolidations or substantial declines tend to follow when the RSI hits these levels.
This RSI reading does not necessarily discount the ongoing uptrend. However, it does point towards a possible dip before a continuation.
Can Solana Hold $200 and Target $220 Next?
The psychological $200 level is now in play. According to analysts at Santiment and SwissBlock, holding this level as support could validate a new leg up for SOL. This would be similar to how Ethereum flipped $3,000 into a base earlier this year during its breakout.
Market researchers expect $220 to be the next resistance. It is comparable to Ethereum’s $4,000 level in its 2021 bull run.
A clean breakout past $220 would confirm a strong market structure. This could open the door for Solana to test or even break above its previous all-time high by early August.
Institutional Adoption And Solana
More than mere price charts and technicals, Solana is seeing strong interest from large investors and institutions. One example is DeFi Development Corp (DFDV).
The Florida-based firm recently expanded its Solana holdings by purchasing 141,383 SOL. It was valued at around $19 million between 14 and 20 July.
DFDV now holds nearly one million SOL, worth roughly $190 million. The company actively stakes its holdings across various validators, including its own, to earn native yield. Over just one week, it earned 867 SOL from its DeFi activities.
Other companies like Bit Mining are also entering the fold. The company announced plans to raise $300 million to build a Solana token treasury. MemeStrategy made history as the first publicly listed company in the region to invest directly in Solana.
The move marks a significant step in the mainstream adoption of blockchain assets. These moves show that institutional faith in Solana is improving as a trading asset and a treasury reserve.
