Solana has risen by 5.63% in the last 24 hours, pushing through the $100 ma. As of 11:01 AM, Solana’s buying volumes were up 22% to $2.07 billion.
This push has seen Solana outperform Bitcoin on a day when most cryptos are in the green. It also comes when Solana is coming off some bad news of a network outage.
On Tuesday, Solana experienced an outage that saw the network go offline for five hours. This is a big deal as it triggered the old FUD that Solana is a centralized and vulnerable network.
The fact that the outage did not trigger a selloff indicates that investors are increasingly confident in what Solana can do. However, other big news from the Solana ecosystem has also helped water down any potential Solana FUD.
Solana Foundation Teams Up With Abu Dhabi For Web 3.0
The latest news is that the Solana Foundation is collaborating with Abu Dhabi Global Market (ADGM) to develop a Web 3.0 ecosystem. With the project expected to receive $2 billion in investments, there is likely to be a boost to the Solana ecosystem, which could boost the price of Solana going into the future.
Overall, Solana’s upside momentum is driven by price resilience during the network outage and news of a collaboration between the Solana Foundation and the Abu Dhabi Free Zone.
Solana Trading In A Symmetrical Pattern: A Signal To An Imminent Breakout
Solana’s current price shows a consolidation phase, with a symmetrical triangle trading pattern pointing to a potential breakout in any direction.
This pattern is quite in line with what is happening in the Solana ecosystem at the moment – a moment of uncertainty on what is next for the future. On the one hand, there is fear that the network outage could cause investors to lose confidence in Solana.
On the other hand, there are those who feel that the fact that Solana has weathered the network outage without a major selloff indicates increased confidence in the network. This is a critical factor that could trigger an upside breakout.
If believers in the Solana network manage to push Solana upwards through the triangle, it could indicate a potential Solana rally in the short term. In such a scenario, Solana could easily trade at $130 or more in the short term and possibly test prices above $200 in a full-blown crypto market bull run.
However, if those who feel the reemerge of network outages could forever dent Solana’s image trigger a downside break, Solana could turn significantly bearish in the short term.
A downside break outside the consolidation triangle could see Solana hit a low of $71, a key support level that it has established in the recent past. Breaking through the $71 support could see Solana quickly hit prices below $50.
Solana Price Prediction: Why Bulls Could Prevail
The asymmetrical trading pattern indicates that Solana is about to break out in any direction. However, there is a strong case for a bullish breakout that could put Solana on course to making new all-time highs.
One of the factors supporting Solana is that the broader market is turning bullish as the Bitcoin halving draws nearer. Bitcoin has already pushed through $44k and uplifted the rest of the market, including Solana. As momentum builds across the market, it could add buying pressure to Solana, triggering a bullish breakout.
— Trade Confident (@TradeConfident) February 7, 2024
At the same time, investors are optimistic that the network outage did not trigger a selloff immediately it happened after. This could signal to the market that Solana investors no longer see such outages as threatening Solana’s long-term sustainability.
Moreover, Solana continues to make big moves that can add to its long-term adoption. A case in point is the collaboration between the Solana Foundation and the Abu Dhabi Global Market Fund for Web 3.0 projects. This and many other projects being built on Solana add to its overall appeal to investors going into the future.
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Solana’s rally in the last 24 hours points to investors placing orders in anticipation of an upside break in SOL.
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