Solana (SOL/USD) Hits a New All-Time High. Should you Buy Today?

After hitting a market cap of more than $17.5 billion, Solana is now set to force its way into the coveted top ten cryptocurrencies. The crypto token posted a strong bullish momentum over the weekend, to extend previous gains, hitting a new all-time high of above $64, which exceeded the previous record of $58 reached on May 18.

Solana is now ranked at position 11 in terms of market cap, just below Uniswap with a market cap of slightly above $18 billion. With its stellar rise, Solana is not stopping any time soon, and we see the previous all time high as a stepping point for a further rise of Solana.

Solana (SOL/USD) Hits a New All-Time High. Should you Buy Today?
Let’s have a technical recap of the crypto token Solana

SOL/USD – A Technical Outlook

Solana Daily Chart Analysis

From the daily chart above, it can be seen that Solana has enjoyed a strong bullish momentum in the last two days, building on the previous upturn, to help it break the previous record. The crypto token is now retreating, and at the time of writing, it was trading at $62.

In our previous outlook, we predicted that Solana would rise up to the price of 40.8, after breaking above the descending trendline on July 29. We booked profits at the level, with the crypto token exceeding expectations. We continue to hold a bullish view of Solana, but let’s have a look at the events influencing the current rally.

Latest Developments on Solana

The rise in SOL/USD can be attributed to the growing optimism regarding cryptocurrencies. However, the stellar rise in the last week was boosted by encouraging prospects of more users joining the Solana blockchain network.

Mango Markets, which is a decentralized exchange on the Solana network, generated about $70 million from last week’s token sale. The sale boosted liquidity on Solana, with users and developers continuing to gain confidence in the blockchain ecosystem. Solana was also boosted by the launch of the Wormhole, a communication bridge with other DeFi networks. With more of these developments likely to emerge, Solana will continue to gain popularity and smash new record highs.

SOL/USD Trade Analysis

As previously indicated, we hold a strong bullish view of SOL/USD. However, with the new all-time high on Solana, new buyers might be cautious to enter a trade.

We consider it more prudent to enter a buy trade in SOL/USD after a dip or price retracement to a support area, and upon trade confirmation via bullish trade signals. The areas around 40.8 and 48.5 will be important to watch, as they have acted as resistance before, although they were broken when prices headed to the previous record high.

Alternatively, prices may retreat to the ascending trendline, which began on July 29. The trendline could act as support for the SOL/USD, allowing the cryptocurrency to surge higher.

However, the retreat on SOL/USD is only anticipatory and the strong bullish momentum could prove difficult to slow down. In this case, I will stay on the sidelines until I find a perfect buy entry point that will improve my risk-reward ratio. Happy trading!