Solana (SOL) crossed a major hurdle in today’s trading session, further strengthening the uptrend. In addition, SOL is also becoming stronger against the flagship crypto, Bitcoin, as ANSEM token distribution and token equities add to the hype.
Solana is the fourth trending crypto on CoinMarketCap at the time of writing. The coin has made huge strides in both price and on-chain activity. ANSEM, a memecoin investor who promoted Solana-based memecoins, also played a part in Solana’s price appreciation during recent times.
Solana crosses above the 50-day moving average
As such, SOL has broken above the 50-day moving average, which happens to be at $75. The 50-day moving average is an important indicator that traders and investors look for in the crypto market. When the coin crosses above this level, the market recognizes it as an opportunity to enter. Once the coin crosses above this level, which has a lot of resistance, it will face resistance in normal market conditions, which may prevent the price from falling back below this level. Hence, traders find this level an entry point.
Solana’s tokenized equity trading volume spikes
There were a lot of factors that were fuelling this rally and helping Solana reach this level. For instance, the on-chain activities blew up, and it recorded the biggest week ever in tokenized equities, reaching a record $1.36B in trading volume and capturing 96% of all tokenized trading activity across chains.
In addition to this, Ansem, a proponent of Solana memecoins like BONK and PUMP.FUN started to distribute ANSEM tokens, which is also a Solana-based memecoin, to the community, and this airdrop also pumped Solana prices and helped it flip the 50-day MA. However, the majority of the tokens distributed were concentrated in 7 wallets.
SOL strengthens against BTC as momentum builds
All these factors in combination worked out so well that Solana is currently on an uptrend when the prices are compared to Bitcoin. On the BTC/SOL chart, the pair has broken major moving averages, showing signs of the uptrend getting stronger.
After crossing the 50-day moving average, SOL has entered the consolidation phase, where the prices were moving sideways foor nearly 4 months. During this period, the prices were stuck between $95 and $80.
With coin SOL entering this zone once again, the same could be expected for some time. However, there is no concrete evidence to prove that the same price action would follow. In fact, the relative strength index, shows a steep climb, which shows the strength of the trend. With this strength, there is also a high chance that SOL could ignore the consolidation zone and rise higher.
