In a notable rebound, Solana’s native token, SOL, surged above $100, recovering from a recent dip caused by a network outage. The fifth-largest cryptocurrency by market capitalization, SOL, is now positioned for its next significant move, according to insights from a prominent trader. Meanwhile, Cardano’s ADA also demonstrated strong gains, outpacing Bitcoin’s recent rally to four-week highs above $45,000 and injecting renewed vigor into the broader crypto market.
SOL successfully reclaimed the $100 threshold, reversing the decline prompted by a five-hour outage on the Solana network. At the time of reporting, SOL was trading at $102, registering a 5% gain in the past 24 hours. ADA exhibited even stronger momentum, posting a 7% advance during the same period.
Notably, SOL and ADA were the sole cryptocurrencies within the CoinDesk 20 Index (CD20) to surpass Bitcoin’s 3% daily gain. The CD20, tracking the performance of major crypto assets, recorded a 4% increase.
Renowned pseudonymous crypto trader Wick hinted at further potential gains for SOL. Analyzing recent price action, Wick pointed out that SOL is forming a chart pattern reminiscent of October and December, preceding significant market moves. Wick highlighted the presence of a shaded squeeze area on Solana, typically indicating an imminent extreme move.
While other major cryptocurrencies trailed behind SOL and BTC, there is an optimistic outlook for the broader altcoin market. Caleb Franzen, founder of Cubic Analytics, observed that the overall sentiment in the altcoin market appears bullish following the reset of frothy sentiment late last year. Franzen pointed to the Total Market Capitalization excluding BTC and ETH (TOTAL.3) as a proxy for altcoins on TradingView. According to Franzen, TOTAL.3 retested a crucial accumulation zone and now shows signs of bouncing back from oversold levels, indicating bullish price action.
In summary, Solana and Cardano’s strong performances, along with Bitcoin’s rally, have injected optimism into the crypto market. While Solana is positioned for a potential extreme move, the broader altcoin market shows signs of recovery and bullish momentum, indicating a positive outlook for the cryptocurrency space.