Solana’s (SOL) fall rally continued on November 3 with its price and market capitalization hitting a new record.
SOL increased 7% in the last 24 hours to $ 236, bringing its market capitalization to more than $ 70 billion for the first time in history. When the token faltered near its record highs, it briefly flipped Cardano (ADA) to become the world’s fifth most valuable cryptoasset.
Currently, SOL’s market capitalization was around $ 69.37 billion, just $ 500 below ADA’s $ 69.87 billion market valuation.
Solana rebounds amid the NFT craze
Solana’s battle for the top five cryptocurrency spot came on the heels of SOL’s renewed bullish force heading into the fourth and final quarter of 2021. For example, Solana’s native blockchain token grew by more than 65% since October 1. On the other hand, ADA’s returns in the same period turned out to be only 2.13%.
ADA underperformed primarily on “sell the news” sentiment. As Cointelegraph covered, Cardano’s token started to sink right after it launched its long-awaited smart contract functionality via the so-called Alonzo update on September 13.
In the days leading up to the hard fork, ADA’s best year-to-date returns were around 1.630%. As of press time, they are approximately 1,050%. In contrast, SOL’s yields to date, as of press time, were above 12,700%.
Independent market analyst Pentoshi attributed the growing number of non-fungible token (NFT) projects in Solana as one of the main reasons behind its price boom, recalling an August 16 tweet that accurately predicted an uptrend for the token.
$ Sun you have passed $ Ada and taken the # 3 spot
Balance has been restored in the world
The Endless #solarium summer https://t.co/DD18hgroEJ
– Pentoshi Won’t Dm You. hates Dm’s. DM’s are scams (@ Pentosh1) November 2, 2021
$ Sol has overtaken $ Ada and has taken the number 3 spot
Balance has been restored in the world
The endless summer of #solana
Messari researcher Mayson Nystrom also noted “formidable growth” for NFT in the Solana ecosystem, noting that the blockchain has processed $ 500 million in total NFT secondary sales volumes since April 2021. Excerpts:
“Whether or not Solana can manifest this initial energy in long-term NFT growth has yet to be determined, but current signs present valid reasons to be optimistic about Solana’s burgeoning NFT ecosystem.”
Will SOL hit $ 275 later?
SOL’s latest rise to its all-time high also came as a breakout of its Bullish Flag structure, as shown in the chart below.
Bullish flags appear as price consolidates within a triangle-like structure after posting a strong bullish move, called the flagpole. Traders usually wait for the price to break above the upper trend line of the triangle before setting their profit target at a length equal to the height of the flagpole.
Solana’s flagpole height is approximate, $ 175. As a result, its breakout move from the Triangle resistance trend line (~ $ 158) causes SOL to grow another $ 175, thus setting its profit target. above $ 275.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves a risk, you must do your own research when making a decision.
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