The price of Solana (SOL) has reached its highest level in 14 months as investors regain faith in the blockchain.
Contrary to expectations that Solana would maintain its sideways price movement throughout 2023, the rally has resulted in SOL trading above the critical $40 level.
The Price of Solana Surges Past $42 as Bullish Momentum Accumulates
SOL is trading at $42.52 as of this writing, its highest price since August 17, 2022.
In doing so, the token has surpassed significant resistance zones and Exponential Moving Averages (EMAs) for four consecutive bullish daily closes.
Wednesday’s SOL trading volume increased by 155%, reaching $3.8 billion, per CoinMarketCap.
SOL now ranks fifth among the most actively traded cryptocurrencies on a global scale, superseding well-established tokens such as XRP (XRP) and Chainlink (LINK).
Among the positive catalysts that have contributed to Solana’s ascent are the $24 million net inflows into SOL-focused funds that occurred last week.
To diversify their portfolios, investors are expanding their horizons and searching out new crypto-assets; Solana is emerging as a favored token.
Recently, Solana has established several significant alliances, including one with the Dubai Multi Commodities Centre, which has elevated the standing and credibility of the network.
SOL holders have had a fantastic month thus far, as the token is currently up 332% year-to-date.
The Launch of the Firedancer Testnet Inspires Renewed Optimism in SOL
This week marked the official launch of Solana’s long-awaited scaling solution, Firedancer, on the testnet, which provided additional encouragement to investors.
By increasing Solana’s speed, dependability, and validator diversity, Firedancer intends to provide a permanent solution to the network’s frequent disruptions.
The introduction of Solana has increased faith in the platform’s scalability, availability, and security.
Subsequently, numerous investors have come to the conclusion that Solana is firmly established as the foremost rival to Ethereum, and may even surpass the market share of the second-largest cryptocurrency globally in the coming months.
Notwithstanding the upward trajectory, in excess of $56 million in SOL was unstaked from wallets linked to FTX and transferred to prominent exchanges such as Coinbase and Binance earlier this week.
Consequently, traders continue to be cautious that SOL could be subject to selling pressure if these FTX-tied tokens are liquidated.
Investor optimism continues to soar, which explains why Solana is among the leading gainers on the cryptocurrency market this week.
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