Solana and major cryptocurrencies like Ethereum and Bitcoin are struggling at spot rates. After the fall of June 6, prices are under pressure, consolidating the position of the dominant sellers since the end of May 2024.
Will Solana’s uptrend remain?
Nonetheless, some analysts are optimistic, expecting not only altcoins to rally in the coming sessions but also Solana, one of the top five coins, to emerge as a leader during the next cycle.
In a position of X, an analyst note Provided the bulls maintain the current uptrend, rejecting any downward attempts from the lows, SOL will continue to float higher.
It is worth noting that this will continue the trend seen since most of the second half of 2023, when the coin rose from obscurity to become one of the top performers, even outperforming Bitcoin. Looking at the daily chart, SOL is up 100% from the January 2023 lows and around 8 times from the September 2023 lows.
Even though there was a slowdown after the rally to $210 in March 2024, the uptrend remains. So far, SOL is down 25% from March highs, with prices retesting a key support trendline. As the bulls come under selling pressure, it will be crucial to attempt to reject the June 6 bears and maintain prices above $160.
Although technical candlestick formations support this bullish outlook, there are favorable developments on the fundamental side of the equation.
Solana passes, but will regulators bring down the whip?
More and more financial institutions are integrating Solana to sustain their offers. So far, PayPal, Visa and Stripe support Solana.
Most importantly, by integrating Solana, they recognize the need to adapt to rapidly changing user preferences, most of whom are looking for cheaper and faster transactions. Solana benefits from a theoretical throughput of up to 65,000 transactions per second (TPS).
Meanwhile, although Ethereum has the largest network, it can only process 15 transactions per second, which negatively impacts transaction fees. Depending on network demand, transferring tokens or running smart contracts on Ethereum can be costly. Fees fluctuate and, at one point, reached over $50, according to YCharts data.
Although Solana is quickly becoming a choice for institutions and coin deployers, challenges persist. In lawsuits filed by the United States Securities and Exchange Commission (SEC) against Binance and Coinbase, the regulator alleges that Solana is an unregistered security.
At the same time, unlike BTC and ETH, SOL, listed on the CME market, does not have a developed futures market. This absence, taken into account when the US SEC wants to approve an exchange-traded fund (ETF), can take years before the product goes live.
Featured image from Canva, chart from TradingView
