The solicited Ethereum-killer, alt coin crypto Solana (SOL), has borne losses in the past couple of months owing to the bear market. This bear market has been the result of the latest FTX collapse, the sinking of one of the most popular crypto exchanges following the filing of Chapter 11. However, in the current scenario, the crypto market turmoil seems to seep in and in this situation, Solana surpassed Shiba Inu (SHIB) and Tron (TRX) in terms of market capitalization.
At the time of writing, alt coin crypto Solana still benefits from this advantage, as per the data from CoinMarketCap. The bullish condition has resulted in the price hike of Solana to 0.9% in the daily timeframe. Additionally, it has also increased up to 36% in the past week.
Alt Coin Crypto Solana: The Catalyst For This Year’s Rise
The alt coin crypto Solana (SOL) has been fortunate enough recently owing to two primary catalysts. Firstly, due to the recent tweet of the Ethereum (ETH) founder, Vitalik Buterin. He mentioned in the tweet regarding the troubled ecosystem. He specifically stated that the “opportunistic money people” have left the platform and that the future looks bright for Solana. Find more news on Solana and other cryptocurrencies at https://cryptoventurenews.com/category/cryptocurrency-news/altcoin-news/.
This tweet has indicated to the communities that the crypto industry is a zone for equal growth. This has even shot the Solana price by 42% in just a single week.
Some smart people tell me there is an earnest smart developer community in Solana, and now that the awful opportunistic money people have been washed out, the chain has a bright future.— vitalik.eth (@VitalikButerin) December 29, 2022
Hard for me to tell from outside, but I hope the community gets its fair chance to thrive🦾🦾
Secondly, there prevailed BONK, a new meme coin in the crypto ecosystem. It constantly made headlines after its release. This resulted in an increase in the number of transactions on-chain and further raised the crypto investor sentiment.
Is SOL Up To The Challenge?
Traders and investors shouldn’t ignore the current problems with alt coin crypto Solana – fear, uncertainty, and doubt. After FTX, there has been a lot of FUD surrounding the ecosystem. Through Messari’s recent overview of Solana, Solana may have distanced itself from the negative vibes of these recent developments.
Due to the Foundation’s exposure to FTX and the ecosystem’s utter collapse, it will be hard for the ecosystem to recover fully. However, these developments give Solana the opportunity to start over from scratch.
In light of this, what are the implications for alt coin crypto Solana? Since the token appears to be moving below its current support at $13.10, resistance at $13.97 was significantly stronger than support at 13.10. Since SOL has a strong correlation with Bitcoin (BTC) and ETH, macroeconomic events could have a negative impact on its recovery.
With positive growth in Nonfarm Payrolls and a lower unemployment rate, investors should keep an eye on next week’s Consumer Price Index data. Bitcoin and Ethereum should rise on any bullishness in these metrics, pulling SOL upwards as well.