The crypto market outlook is positive today, July 11, as its cap shows a gain of 0.69% at the time of writing. But while the top assets struggle, Solana (SOL) shows impressive gains in the 24-hour and 7-day trends. At the time of writing, SOL has gained 6.07% in 24 hours and 14.52% in one week. The question now is, since SOL is gaining when other assets are losing, what’s next for the crypto asset?
SOL Gains While Top Coins Loses, Any Reason?
Solana is an open-source project utilizing the permissionless feature of the blockchain to offer decentralized finance solutions. Since its launch in 2020, the crypto network has continued pushing its relevance. As of today, July 11, 2023, the crypto project occupies the 9th position on the Coinmarketcap ranking.
Apart from its rank, SOL is gaining today in price, trading volume, and market cap. The increased activities on its network have pushed the trading volume to $524,345,790, representing a 19.13% increase in 24 hours. Also, its market capitalization now stands at $8,867,175,756, showing a 6.11% increase in 24 hours.
Usually, when the global market cap gains, it shows that many crypto assets are recording gains. But given that top assets are not gaining currently, network-related news or developments might be pushing SOL’s gains.
One of the recent events related to Solana is the prediction that a former CEO of Goldman Sachs, Raoul Pal, released on it. Pal, now the Real Vision CEO, stated that Solana could move the way Ethereum did after losing massively in 2018.
Pal pointed out that ETH gained 47x times after it recorded a very low value in 2018. As such, he expects SOL to surge 20x its price now.
Pal said, “There is a potential, a dream scenario, for SOL to do the same thing Ethereum did from its low in 2018 when it increased 47-fold. Solana’s lowest price was $9, so the numbers could get very interesting with simple math. In my view, Solana could increase its value 20 times with current prices.”
What’s Next For SOL Investors?
Based on SOL’s daily chart above, the price trend is positive as the coin trades above the 50-day and 200-day Simple Moving Averages. This position shows that SOL is sporting a bullish trend in the short and long term.
Also, the Relative Strength Index (RSI) currently stands at 68.78, close to the overbought region of 70. Since the line points upward, SOL will record more gains, but when it reaches the overbought zone, a trend reversal to the downside will likely occur.
Lastly, the MACD line is above the signal depicting a bullish trend. But again, the faded histogram bars suggest a possible trend reversal very soon. So while SOL is currently bullish, traders should note the bars and the RSI pointing at a possible trend reversal.
Featured image from Pixabay and chart from TradingView.com