Solana’s comeback from the drop to the $23 level is largely attributed to its latest listings on exchanges. The broader market swings fuelled the current volatility and price rally for SOL. The fact that SOL is scalable without relying on L2 and sharding makes it lucrative for traders. It has contributed to the increasing demand for SOL across markets and spot exchanges. Considered a top competitor of the Ethereum Network, SOL offered 2000% in ROI over the past year.
SOL Price Chart | Source: CoinGecko
Based on the above price chart, SOL’s price was 10% below last week and nearly 45% below the monthly high. The altcoin traded at the $58 level in the third week of May 2021, and hasn’t completely recovered to that level in the past 3 weeks. One of Solana’s greatest assets is its development community and there has been significant improvement in the onboarding flow.
Increased demand and increasing accumulation can be attributed to this. This supports a bullish narrative for SOL’s price and at the same time, social media mentions have dropped significantly in the past week, based on data from lunarcrush.com. This is another factor driving SOL’s price towards a rally in the following 2 weeks of June 2021.
Social Volume of SOL | Source: Lunarcrush.com
A drop in social mentions corresponds to an upcoming local high in SOL price based on trends from the above chart. It is anticipated that the same would occur and the price is expected to cross the $40 level, an appreciation of over 100% from the current price level. Despite dropping social volume and social media mentions, SOL’s social engagement has increased. This signals a rise in the number of traders interested in the altcoin. The current trade volume was at its lowest since the past week, based on market volume data from Lunarcrush.
Among other DeFi projects like AAVE, SUSHI, CAKE, CRV, YFI; SOL continues to remain undervalued. The increasing investment inflow supports the price rally to the monthly high. Based on the on-chain metrics and SOL’s rally alongside LINK and other altcoins in top 20, that have recovered from the crash, SOL’s comeback above $40 is probable in June 2021.
