Can Solana (SOL) Sustain Its Google-Triggered Price Rally?
Solana (SOL) has been among the top gainers for the past weekend. This was due to the bullishness that followed the announcement that Google was now running Solana nodes. As expected, the price of the digital asset rallied in the time following the announcement, rising more than 15% to finally cross the $38 mark for the first time in almost two months. But as the market ushers in another trading week, can SOL hold its gains?
Solana Sees Slow Start
The beginning of the new week has come with some negative movement for Solana. In the last 24 hours, the digital asset has seen a double-digit decline which represents a fast fall in the last two days. So despite the bullish news from Google, investors remain bearish toward the cryptocurrency.
This shows weakness in the digital asset and a further inability to hang on to the gains that were recorded during the weekend. Investors are beginning to turn their attention towards its larger counterparts after sell-offs rocked the digital asset during the weekend.
Even the SOL trading volume saw a double-digit decline in the last 24 hours. As trading slows, so does the probability of the asset holding its value decline. It should be noted that SOL has fallen to about $31 at the time of this writing, which puts it dangerously close to its weekly low of $30.35. While this could be interpreted as bullish given that it still remains above its weekly low, it should be noted that the digital asset has lost about $6 off its value to reach this point.
Nevertheless, Google’s news remains a long-term bullish indicator for not just SOL but the crypto market as a whole. It signals the entrance of players into the space that transcends just trading in cryptocurrencies such as Bitcoin and Ethereum and actually taking a more fundamental position in the market.
SOL price falls to $31 | Source: SOLUSD on TradingView.com
Working On The SOL Network
The fact that Google has begun running validators on the Solana network has not been the only bullish news for the digital asset. Co-founder Anatoly Yakovenko has said that the network is actually working on a fundamental issue; the power outages that have rocked the digital asset.
Speaking at the Breakpoint 2022 annual conference in Portugal, Yakovenko explained that the team had worked on recent updates to help make the network more reliable. He explained that the multiple power outages that were recorded were “not the experience we want to deliver”.
This could mean that the days of network blackouts for Solana are coming to an end. If so, it erases a significant pain point for users while reigniting faith in the network across the space. This, coupled with the fact that USDC issuer Circle is planning to launch a cross-chain transfer protocol of the Euro Coin (EUROC) on the Solana blockchain at the start of 2023, the next few months are shaping up to be quite bullish for the Ethereum competitor.
Featured image from Crypto News, chart from TradingView.com
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