Markets
Can Bulls Break Out of Yearly High as Layer 1s Dominate Crypto Volume?
Solana price is trending across major exchanges as it outperforms the entire market in terms of network performance, usage, and dominance. SOL price surged 6.2% to $193 during the early hours of Monday morning. The surge coincided with Bitcoin breaking out of a key resistance level and the overall market recovery.
Furthermore, Solana’s exemplary performance in handling millions of transactions every minute with minimal network disruption has cemented it as a plausible layer 1 blockchain. This sentiment is reflected in the rapidly increasing market dominance of cryptocurrencies.
L1s Dominate Trading Volume as SOL Surpasses BTC, ETH, and XRP
Holinessan on-chain data analytics firm, shows that layer 1 blockchains took the majority of the volume and dominated the markets last week. This was likely due to the market-moving events that week.
According to Santiment, Bitcoin, Ethereum, and Solana closed last week in the green; their combined volume power surpassed that of other cryptocurrencies such as Layer 2 and meme coins.
Meanwhile, Solana has surpassed Bitcoin, Ethereum, and XRP in terms of market dominance, up 38% year-to-date (YTD). Bitcoin came in second with a positive 16%, with ETH and XRP losing 4% and 16% of their market dominance, respectively.
Solana Dominance vs BTC, ETH, XRP Dominance | Source: Tradingview
Solana’s dominance is showing signs of a breakout against Bitcoin’s dominance, further confirming SOL’s bullish trend. Currently, Solana’s overall market dominance stands at 3.68%, up 1.72% over the past 24 hours. Solana is battling with BNB for the third spot, as the latter’s dominance stands slightly lower at 3.57%.
Solana Price eyes new yearly high with additional 28% gains ahead
Price SOL is in an uptrend with a significant bullish breakout above the previous resistance level around $172. This shows a double bottom, a bullish reversal pattern that has finished forming and indicates a potential further upside move.
Solana price is trending above the 50 and 200 day EMA, which provide support levels around $159 and $137, respectively. There has been a recent consolidation around $180, which makes it a minor support zone. SOL Price Prediction shows that the asset is expected to rise slightly and test the next major resistance around the yearly high of $210, with a target of $220. This could take it 8 to 28% above its current price level.
Solana Price Forecast Chart | Source: Tradingview
The relative strength index (RSI) is at 68.32, close to the overbought territory and signals strong bullish momentum. It also suggests caution for potential pullbacks or consolidations in the short term. Chaikin Money Flow (CMF) is at 0.23, indicating strong buying pressure and positive money flow into the asset. Overall, the technical indicators in our Solana price analysis remain bullish on Solana price.
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Frequent questions
Solana has surpassed Bitcoin (BTC), Ethereum (ETH), and XRP in terms of market dominance. It is up 38% year-to-date (YTD), while Bitcoin is up 16% and Ethereum and XRP have suffered losses in their market dominance.
Solana price is expected to test the next major resistance around $210, with a target of $220.
Layer 1 blockchains are the base layer of a blockchain network, which manages transactions and network security. According to Santiment, layer 1 blockchains have dominated trading volumes recently, surpassing layer 2 solutions and meme coins.