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Solana (SOL) price is currently at a crucial juncture, which will be of decisive importance for the coming weeks. If the SOL bulls manage to leap above the currently most important resistance, a rally of up to 40% could be on the cards. If the bulls lose their dominance, another drop of up to 21% could be imminent.
Key moment for SOL price
Analysis of the 1-day chart using Fibonacci retracements shows that SOL price is at a crucial point for the coming weeks. At the time of writing, SOL was trading at $19.19, just below the 38.2% Fibonacci retracement level. So far, the SOL bulls have failed to break this level of $19.72.
If successful, a price level above $21, at which SOL was trading prior to the announcement of Solana Token’s classification by the US Securities and Exchange Commission (SEC), will again be within reach. A little further up, the 200-day exponential moving average (EMA) awaits SOL price at $22.05 – an indicator often described as a “bull line” that SOL investors have been unable to break through since April 2022. .
In this bullish scenario, the 200-day EMA can be considered as the second most important challenge for the SOL bulls. An upside break could allow the price to rise to the 61.8% Fibonacci retracement level at $27.00, which also marks the year-to-date high, potentially marking a 40% rally. At the latest at this level, an initial pause in the rally can be expected.
In the bearish case, SOL failed to capture the 38.2% Fibonacci retracement level. In this case, a drop to $15.30 can be envisioned, which would represent a price loss of approximately 21%.
Solana displays strong fundamentals
The fresh rally in Solana price can also be attributed to strong fundamentals. Last Friday, June 30, Solana across Ethereum for the first time in 24-hour NFT volume. Solana NFTs saw an increase of $25.5 million in trading volume, which is over 1,900% day-to-day (+28%, or $24.6 million for Ethereum).
Furthermore, Drift Protocol’s “Super Stake” is also currently causing a stir in the Solana ecosystem. Risk-averse traders can earn an additional 10% return by taking advantage of Solana Staking Derivatives. Marinade Finance’s Marinade-SOL (MSOL) is a preferred derivative, which enables traders to deposit MSOL tokens as collateral and borrow additional SOL tokens for continuous retaking, multiplying returns by up to three times.
The concept draws parallels with Ethereum’s MakerDAO and its STETH yield multiple staking via Aave. Although there are inherent risks, demand for super stakes remains high, allowing Solana to be optimally utilised.
Super Stakes acts as a catalyst for the battered DeFi ecosystem, powered by the booming NFT market. Solana’s flexibility, combined with innovative solutions like Super Stack, makes SOL ready for rapid breakouts.
Featured Image from iStock, Chart from Tradingview.com
