Solana (SOL) presented an attractive opportunity for buyers to take advantage of a favorable risk-reward ratio as it pulled back to test an earlier area of resistance. At the same time, the market remained under the control of the bulls.
In addition, the on-chain metrics showed promising performance. In particular, the number of active users experienced a gradual increase and an extraordinary increase in the deployment of smart contracts on the platform was also observed.
Could this impressive on-chain performance point to even greater potential for Solana going forward?
Analysis of SOL’s performance
According to data from Coingecko, the current trading price of SOL has reached $26.58, up 1.0% in the last 24 hours. Even more notable is the remarkable seven-day rally, where SOL is up as much as 21.7%.
Source: Coingecko
These statistics indicate positive sentiment around the cryptocurrency and suggest potential opportunities for investors and traders.
While a slight loss of bullish momentum may have been observed in the lower time frames, the 1-day chart revealed significant bullish potential for SOL. a SOL price report suggests that despite minor fluctuations in shorter periods, the overall outlook for SOL remains optimistic, especially given the bulls’ strong performance in July.
Strength in bullish momentum and demand
Two critical indicators, the Relative Strength Index (RSI) and the On-Balance Volume (OBV), further support the bullish outlook for SOL. The RSI showed robust bullish momentum, indicating that buying pressure was significant during the recent price rally.
SOL market cap currently at $10 billion. Chart: TradingView.com
In addition, the upward trend in the OBV signaled a significant increase in demand for SOL fueling the impressive price increase.
With the price of SOL showing strength and resilience, investors can take this as a positive sign for the cryptocurrency’s future performance. However, it is essential to exercise caution and do thorough research before making any investment decisions as the crypto market is known for its volatility.
Solana’s new developer tool
Meanwhile, the Solana blockchain protocol recently announced the latest developer tool, Solang. This innovative tool addresses the fundamental differences between the Solana ecosystem and the Ethereum blockchain network, particularly regarding the programming languages used in their designs.
1/ 🎉 Introducing Solang: Building on Solana with solidity
Today, @solanalabs announced Solang, a compiler that allows developers to write smart contracts on Solana in Solidity, Ethereum’s primary programming language.https://t.co/X703sAMJBC
More information👇
— Solana (@solana) July 19, 2023
With Solang, developers can now write Solana programs using the popular Solidity programming language primarily associated with the Ethereum network. This integration is a direct gateway for launching decentralized applications (dApps) on Solana, providing an excellent opportunity for applications to extend their value beyond their immediate ecosystems.
This cross-chain compatibility is likely to encourage developers to explore the huge potential of Solana’s high-throughput, low-latency, and cost-efficient platform for building advanced dApps.
(The content of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
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