The price of Solana has increased by 25% this month and 135% this year, outpacing the top 100 cryptocurrencies by market size.
Given that SOL carries the SEC’s security classification, which jeopardises its exchange listings, the performance is remarkable.
Experts like Tedtalksmacro are analysing the unconventional performance to determine how much FUD was used to motivate the rally.
The price of Solana (SOL) exhibits bullish tenacity, achieving greater highs despite headwinds caused by the ongoing regulatory crackdown on the cryptocurrency industry. The Ethereum (ETH) killer has continued to outperform the market, driving market gains in the first week of July.
Solana’s price leads the weekly gainers.
Since the beginning of July, the price of Solana (SOL) has increased by a startling 25%, while Bitcoin (BTC) and Ethereum, two of the biggest cryptocurrencies, have seen rises and losses in the 0-3% range. According to CoinMarketCap data, SOL is the top weekly gainer, with a 15% increase in market cap in the previous day. A 10% increase in 24-hour trading volume demonstrates that demand for the token is also continuing to rise.
Given that SOL and 11 other cryptocurrencies were recently classified as securities by the US Securities and Exchange Commission (SEC), this bullishness is unconventional or unexpected for the general public. The tag caused SOL to lose its position on the Robinhood app and European exchange and payments provider, Revolute, by casting a shadow of Fear, Uncertainty, and Doubt (FUD) over it.
Solana, Cardano, and Polygon are important players on the SEC’s list of 12 players. Notably, SOL has outpaced ADA and MATIC, which have gained 0.10% and 3.42%, respectively, over the past seven days. This indicates that Solana alone is benefiting from the FUD.
It is important to note that the Solana Foundation vehemently rejected the SEC’s security classification of SOL, arguing that it had value in the ecosystem.
The Solana blockchain agreed to fork with the proposal to address the SEC’s legal action, winning support from both investors and influencers. For simplicity, a fork occurs when a community changes a blockchain protocol to function according to distinct rules.
Bold, but not always a terrible idea. Solana’s community branch will resolve the security problem.
You won’t be hit by bankruptcy for the next three years in a row. A successful fork of $ETC is $ETH.
Solana price and the role of FUD
FUD, according to Tedtalksmacro, an authority in cryptocurrency markets with an emphasis on macroeconomic fundamentals, is the primary factor driving the Solana price surge.
According to him, SOL’s market value will rise the more FUD is created around it. It’s interesting to see how other ecosystems, including Binance, whose CEO goes by the moniker “4”, are fighting against this idea.
Solana’s price may surpass $25.00 or, in a highly positive scenario, return to the range high at $26.30, levels last seen in February, as analysts expect an uptrend to continue.
The Relative Strength Index’s (RSI) northward movement indicates an increasing momentum. The Awesome Oscillators’ (AO) advantageous position above the midline supports this.
It is noteworthy that the RSI position at 72 indicates that SOL is overbought, indicating that a pullback may be on the horizon but won’t be severe enough to undo recent gains. Investors should wait for confirmation because Welles Wilder only labels an asset as overbought upon a strong breakdown below the 70 level by the RSI. The bulls could revive right below 70 before a further rally.