Solana Is Approaching Record Highs

Solana has cemented itself within the elite of crypto, currently boasting $80 billion in market capitalization. The world's 5th largest cryptocurrency by market cap is enjoying a phenomenal month in May after dwindling away the previous month, and the fan-favorite SOL may be set to achieve all-time highs sooner rather than later.

Daily time frame analysis

SOLDUSD - 1 Day Time Frame

Currently, the price of Solana is successfully holding what are known as the FUD highs as support, in contrast to Bitcoin, which is still attempting to reclaim and maintain these levels.

Before the onset of widespread FUD that pushed many weaker coins and projects back into a bear market phase, Solana was experiencing more significant declines. However, it managed to sustain its December highs and the previous swing low recorded on March 5th, during a period of substantial market liquidations.

This resilience underscores a stronger demand for Solana, often hailed as the "network of the future," over other slower and less popular blockchains.

SOL has established a well-defined trading range, featuring a smaller internal box that represents a higher low, indicative of increasing demand. The marked green line highlights a strong support level where many positions were opened and accumulated.

If Solana continues to hold the FUD highs robustly, it could signal a market bottom, especially if Bitcoin and the broader market ascend to their highs. Conversely, if Bitcoin fails to sustain its highs, it's plausible that SOL may lose this support and potentially test the 100-day moving average (100MA), possibly forming a new higher low.

It's also possible that along with Bitcoin, Solana will continue to experience range-bound movements with a gradual uptrend.

Hourly time frame insights

SOLUSD - 1 Hour Time Frame

On the one-hour chart, Solana's price is likely to respect the 100MA and maintain its upward trajectory. Resistance might occur at the last significant rebound before SOL reached $120.

If the market surges without building sufficient support and subsequently rejects at the highs, Solana could stabilize at around $176. Should it fail to maintain this level, the price is likely to drop to the swing low near $160.

Solana's growing significance in crypto

Several projects are increasingly migrating to and leveraging Solana for its high performance, which enhances its adoption and potentially increases the value of its native currency, SOL.

Notably, Helium, known as the fastest-growing wireless community network that offers 5G connectivity for just $20 per month, has migrated to Solana.

Noah Prince, Head of Protocol Engineering at Helium, has stated that the best strategy for Helium is to grow alongside Solana.

Furthermore, the privacy-focused browser Brave now utilizes the Solana blockchain, and even Shopify has integrated payment options for cryptocurrencies through Solana.