Market Sentiment Powers Bullish Mood in Solana (SOL): $200 Next Target?
Aiswarya Gopan • 2 min read
Solana (SOL) is one of the strongest performers in the wider crypto market in early trading on Thursday, as investors pile into it and propel it to the sixth position in terms of ranking by market cap. At the time of writing, SOL/USDT is trading around $193.
One of the biggest drivers of the bullishness is the extremely positive sentiment in markets towards cryptocurrencies lately. Investors are cheering Bitcoin smashing a new record high while Ethereum has crossed the $4,200 mark over optimism of the launch of US’s first ever Bitcoin ETF earlier this week. The positive sentiment has spilled over into altcoins and benefited Solana immensely, helping it climb over 18% higher in the past 24 hours.
Wormhole Brings Interoperability Between Solana and Terra
In addition, investors are also cheering the integration of Terra’s ecosystem into Solana’s bridge protocol Wormhole V2. This brings interoperability among four large blockchain networks, including Ethereum, Binance Smart Chain, Solana and now Terra, allowing users to easily transfer tokens between these networks – a big boost for DeFi capabilities on each blockchain.
The development is likely to spur innovation in the cross-chain DeFi and DEX space, powering scalability that was previously unknown and offering users a wider range of token listings on leading projects in these sectors. Terra’s ecosystem can power the use of more stablecoins on Solana-based projects, driving more growth and adoption in the coming weeks and months.
Latest Fundamental Developments in Solana’s Ecosystem
On the fundamentals front, there are several other exciting developments to report within the Solana ecosystem that can lend support to the SOL token in the near term. With Halloween coming up soon, Solana-based NFT Solkins is set to launch the premium pre-sale of NFT Pumpkins on October 26. Featuring a collection of 300 NFTs, each uniquely hand drawn and algorithmically put together with the help of computer code, the sale can gain significant traction on the blockchain soon.
Meanwhile, Solana-based social network Chingari unveiled its own crypto token $GARI at a star-studded event in India earlier this week, making it the country’s first ever social crypto token. Chingari supports over 50 million monthly active users on its platform and has roped in a leading Bollywood star, Salman Khan, as its brand ambassador. As part of the launch, Chingari will soon launch its own NFT marketplace, GARI NFT Marketplace, bringing higher levels of activity on the blockchain.
SOL/USDT Technical Analysis
On the H4 price chart of SOL/USDT, moving averages as well as leading technical indicators MACD and momentum are exhibiting a strong bullish bias. Solana’s price is far above the pivot point at $155.13 and has broken past two resistance levels at $172.64 and at $185.17.
Looking ahead, SOL buyers look set to target the key $200 level, which should be easy as long as the bullish momentum holds. The next obstacle they will encounter is resistance at $215.21.