Highlights:
- Solana is in a correction, pretty much like the rest of the broader market
- A slight correction in the price of Bitcoin driving Solana’s price action
- Solana fundamentals are strong and could push it to over $200 soon
Solana has not been spared in a day marked by widespread corrections in the cryptocurrency market. At the time of writing, Solana (SOL) was trading at $169.73, reflecting a 3.78% decline over the past 24 hours.
Advertisement
This downward trend is not isolated to Solana alone; it mirrors the broader market’s movement, with Bitcoin (BTC) also experiencing a 3.24% drop. The broader market’s downturn can be attributed to the recent decision by Mt. Gox to move an additional $2.5 billion worth of Bitcoin, causing a ripple effect across the cryptocurrency landscape.
Potential Bullish Rebound for Solana Price
Despite the current dip, analysts suggest this may be a temporary setback. So far, Bitcoin has shown resilience in absorbing large distributions from Mt. Gox. If this trend continues, the overall bullish trajectory of Bitcoin could soon resume, positively influencing other cryptocurrencies like Solana. Altcoins often follow Bitcoin’s lead, and Solana is no exception.
Innovative Developments: Real-World Applications and ZK Compression
Solana has several promising developments that could increase its price once the market stabilizes. A significant announcement today came from RNS.ID, which revealed plans to launch digital IDs on the Solana blockchain.
https://t.co/DfAGzubb56 to soon launch Legal Digital IDs on Solana.
This marks the first time a sovereign nation issues legal identity on Solana.
On-chain digital IDs empower people to control their identities and instantly verify them with service providers.
The future is… pic.twitter.com/BB9HIgElaJ
— RNS.ID 🌏 (@RNS_global) July 25, 2024
This initiative represents a milestone as it marks the first time a sovereign nation will issue legal identity on Solana’s blockchain. The potential for on-chain digital IDs to empower individuals by giving them control over their identities and enabling instant verification with service providers adds a layer of real-world utility to Solana’s blockchain.
The tweet from RNS.ID highlights the significance of this development:
“http://RNS.ID will soon launch Legal Digital IDs on Solana. This marks the first time a sovereign nation has issued a legal identity for Solana. On-chain digital IDs empower people to control their identities and instantly verify them with service providers.”
Another noteworthy update for Solana is the introduction of ZK Compression on its DevNet. This development was shared by Swen of Light Protocol, indicating a significant enhancement in Solana’s technical capabilities.
The tweet reads:
“ZK Compression is now live on Solana Devnet. Brick by brick. If you’re a Solana builder, check it out now: 100x-1000x cheaper rent. Full indexer support by @heliuslabs, integrated into Light’s development CLI.”
These advancements highlight Solana’s ongoing innovation and potential to attract more developers and real-world applications, further strengthening its market position.
Technical Analysis: Solana Invalidates Bullish Channel Intra-day
However, the technical charts paint a cautious picture for Solana in the short term. Solana’s price has turned bearish in the last 24 hours, breaking out of the bullish channel it had maintained for the past three weeks.
If bearish momentum continues, traders should monitor the $162.66 support level. A breach of this level could cause Solana to drop to $141.95 soon. Conversely, the $186.59 resistance level will be crucial if the bulls regain control. Successfully breaking through this resistance could set the stage for Solana’s price to rally to $210.11.
Solana Price Outlook: Strong Fundamentals Amid Market Volatility
Given Solana’s solid fundamentals and the current downturn being primarily influenced by Bitcoin’s price movements, there is a high likelihood of a bullish rebound. Bitcoin’s ability to absorb the Mt. Gox distributions without severe price impacts could lead to a renewed rally, which would, in turn, lift altcoins like Solana.
Overall, while Solana’s price is currently experiencing a price dip, the broader market’s conditions, and Solana’s innovative strides suggest that this may be a temporary setback. It could be an opportunity to buy the dip for Solana with a target of $200 or higher.
Advertisement
