Solana ($SOL) closed in the green on Monday, capping off a four-day run of positive gains with a chunky 5.70% increase in price.
This recent uptick is reportedly just the beginning of the ‘Solana Summer’ vibes. As the second round of trade talks between the US and China began yesterday, the crypto community is looking at Solana with much hope and excitement.
Join us as we take a closer look at Solana and why expert analysis suggests it could reach $180 in the next rally.
From the lens of a technical analyst, Solana’s weekly chart looks extremely promising. On it, the crypto has gracefully bounced off its 200 EMA (exponential moving average).
It now seems to be finding legs in an important support zone that kicked off the massive rally of late 2024.
Even a small uptick from here could see $SOL reaching at least the $187 mark. However, if the momentum continues, Solana will look well-positioned to challenge its all-time high of around $300.
$SOL’s monthly chart confirms its bullish bias. Here, the token is comfortably trading above the 20 EMA after having bounced off the 50 EMA a couple of months ago. This is a strong bullish signal.
Finally, the OI-weighted funding rate sits at a positive $0.0091% at the time of writing. This shows that Solana bulls are happy paying a premium to the bears, confirming the crypto’s bullish outlook.
The signs (both fundamental and technical) point towards an upcoming Solana rally. If you want to get maximum gains from this run, check out Solaxy, Solana’s new kid brother on the blockchain
The developers behind Solaxy, like so many of us, are die-hard Solana supporters. They watched in anguish as the once-speedy and highly scalable meme coin-friendly blockchain started withering with pain.
The Solana of today is a bit different, and not in a good way, from the Solana of, say, a year ago.
While it has welcomed so many meme coins with open arms, the runaway success of some, like $TRUMP and $MELANIA, brought in a flood of new investors to Solana.
As you can probably guess, this overloaded the network. For all its strengths, Solana wasn’t built to handle this sudden explosion in transaction requests.
Solaxy’s grand idea is to build the first-ever Layer 2 solution on Solana. Think of it as adding an express lane to a busy highway.
By offloading many transactions onto this side chain (the L2), Solaxy will massively reduce the burden on Solana’s primary blockchain (the L1).
However, it’s worth noting that all the transactions will continue to be settled on the secure Layer 1 chain. Solaxy will do the heavy lifting off-chain, then bundle the transactions into single, optimized batches for on-chain validation.
Simply put, Solaxy’s game plan is to leverage a newly built L2 to restore Solana’s efficiency and reduce congestion, while ensuring investors continue to benefit from Solana’s top-notch L1 security.
You might have noticed Solaxy’s mascot – the iconic Pepe the Frog, but with an Einstein-like makeover. Despite being as quirky as you’d expect from a meme coin mascot, it seems to hint that this project has some serious brainpower.
Disclaimer: The crypto market guarantees nothing. Kindly do your own research before investing; none of the above is a substitute for financial advice from a professional.
