Why is Solana (SOL) price up today?

NOIDA (CoinChapter.com)— Despite the general bearish sentiment in the cryptocurrency market, Solana has shown resilience. The broader market’s decline, intensified by concerns over potential sell-offs linked to the Mt. Gox Bitcoin repayments, failed to impact Solana’s upward momentum.

Recent announcements from the Solana Foundation likely played a significant role in this anomaly.

Solana’s Price Rally Amid Bitcoin’s Weak Performance

Solana’s price surged nearly 15% since June 24, reaching a daily high near $140 on June 25. The rise contrasts sharply with Bitcoin’s recent performance, which has struggled due to the Mt. Gox trustee’s announcement of 850,000 BTC repayments.

The potential influx of this large volume of Bitcoin into the market has led traders to pivot towards altcoins, including Solana.

The Bitcoin Dominance Index (BTC.D) fell by 1.82%, its worst daily performance since January, highlighting the shift in market sentiment.

Furthermore, Solana has attracted significant institutional interest, with Solana-based investment funds recording a net inflow of $2.7 million for the week ending June 21.

On the other hand, Bitcoin and Ethereum funds did not have a good week, with Bitcoin funds bleeding $630 million in outflows, indicating a growing preference for Solana among institutional investors.

Recent Developments and Upgrades Bolster Solana’s Ecosystem

The Solana Foundation’s introduction of Solana Actions and blockchain links, or “blinks,” is a new feature allowing users to perform Solana transactions directly from any website or application that can display a URL.

The functionality could make blockchain transactions more accessible, impacting activities such as crowdfunding, online purchases, and on-chain voting.

Solana’s network also saw an increase in its total value locked (TVL), reaching 31.12 million SOL as of June 24. The blockchain’s TVL reached its highest since April 2022, marking a 200% increase in TVL (in USD) YTD.

The rise in TVL reflects growing engagement and confidence in the Solana ecosystem, appealing to both users and developers.

These developments, along with the consistent growth in network usage, have influenced market sentiment and investor confidence. The integration of blockchain transactions into everyday internet activities through features like Blinks could enhance Solana’s adoption and market performance, Robin.

Bullish Pattern Another Reason Why Solana Price Is Up

Meanwhile, SOL price have formed a bullish technical pattern called the ‘falling wedge.‘

A falling wedge pattern features a pair of converging trend lines connecting lower highs and lower lows, forming a narrowing shape that slopes downward.

The pattern indicates that an asset’s price while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Typically, a breakout occurs upward, in line with the overall trend.

To estimate the price target, traders measure the widest part of the wedge at the beginning and project this distance upward from the breakout point. A higher trading volume during the breakout confirms the reversal’s reliability, indicating stronger market conviction and a higher likelihood of success.

According to the rules of technical analysis, SOL price might rally over 60% from its current level to reach the pattern’s projected target near $220.

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