The price of Solana has dropped by 5.3% today. Still, investors continue to believe in the potential of this layer-one blockchain, as indicated by a significant amount of capital that has been poured into the token since September 2023.
According to on-chain activity traced by Glassnode, net inflows during this period of approximately 15 months amounted to $776 million.
A significant portion of these funds could come from meme coins, as this segment of the crypto market has been growing rapidly. Most developers have relied on the Solana blockchain to mint these tokens.
So far this year, the network’s native token—$ SOL—has delivered gains of 72.7%, surpassing its competitor in the smart contracts space, Ethereum, which saw gains of only 45.5% during this period.
Meanwhile, the token has underperformed Bitcoin ($BTC) during this period. This suggests to analysts that $SOL could experience further upside later in this bull cycle when the alt-coin season starts.
The popularity of meme coins has been one of the sector’s most important catalysts, as Ethereum lagged behind Solana in terms of transaction costs and execution speed.
Scalability issues have plagued the network created by Vitalik Buterin for years, and Solana stepped up to fill the gap at a crucial time when these ‘internet jokes’ started to gain traction among investors.
In line with what is seen on-chain, the latest report from CoinShares indicates that exchange-traded products (ETPs) and funds that invest in Solana have poured $80 million on this digital asset so far this year.
Solana’s Bull Flag is Still in Play After Bull Trap
Since late November, a bullish pattern has been unfolding that could propel the price of Solana ($SOL) to new heights.
This technical setup is called a bull flag and consists of an initial uptrend, followed by a brief pullback that ends up with a spike above the uptrend’s former peak.
On 21 December, the price action broke below the lower end of the flag but rapidly recovered and moved back to its body.
In technical terms, this kind of move is commonly known as a bull trap.
When this happens, traders push the price downwards until they flush out many long positions by triggering their stop-loss orders. That bull trap appears to have worked as $SOL recorded three consecutive days of price upticks.
Even though that streak ended today, the price is now back in the flag’s body, which means the pattern is still in play. If subsequent bullish moves push the price above the flag’s upper bound – located at around $200 – chances are that the setup will unfold as expected, with a significant spike in Solana’s price in the near term.
The Relative Strength Index (RSI) has moved close to the oversold area, which means that this pullback could soon exhaust its ammunition.
Overall, the outlook for the Solana blockchain and $SOL token is bullish. Investors’ interest in the ecosystem and its native token continues to be strong, as indicated by the significant inflows that have come their way since this year started.
If the pattern is confirmed, the first target for Solana based on the flag’s pole size would be $300 per coin.
This L2 Network is Raising Millions from Investors to Solve Solana’s Congestion Issues
A project called Solaxy is attracting investors’ attention lately as it solves a major issue that could prevent the Solana network from further beating Ethereum at its own game.
https://twitter.com/SOLAXYTOKEN/status/1871592567126806681
In just a few days, the presale of its native token, $SOLX, has raised $5.8 million as Solaxy’s value proposition has attracted thousands of early buyers.
Solaxy bundles transactions offline and sends them to the Solana network as a single transaction to alleviate the network’s congestion.
Coinsult has audited the protocol’s code to ensure that it has no major flaws.
Currently, $SOLX is being offered at a discounted price of $0.00158. This offer expires in less than 18 hours. Once that period ends, the price will increase until the project raises its funding target.
To buy $SOLX, visit the Solaxy website and connect your preferred crypto wallet. You can convert $USDT, $ETH, or $BNB to $SOLX or buy it with a bank card.
Don’t miss the chance to own this promising token at this attractive price.
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