Solana (SOL) has experienced significant growth in its price over the past few days, largely attributed to Ripple Labs’ recent court victory against the US Securities and Exchange Commission (SEC). In the last week alone, Solana’s price has jumped by 23.72%, and in the past month, it has seen a remarkable increase of more than 68%. Furthermore, SOL’s price has skyrocketed by over 172% since the beginning of the year, surpassing even Bitcoin. As of the time of writing, Solana is trading 3.42% higher at $27.20.
The driving force behind SOL’s recent surge is the Ripple Labs victory against the SEC. Following the news of the court ruling, the digital currency experienced a staggering 48% increase before pulling back slightly. The ruling by US District Judge Analisa Torres favored Ripple Labs, agreeing that half of the company’s sale of the XRP token did not violate federal security laws. Ripple has long argued that XRP is not a security, but the SEC has deemed it to be. While the judge ruled that XRP is a security when sold to institutional investors, the partial win for the SEC has provided some clarity to the ongoing legal battle. Ripple Labs has been fighting against the SEC’s lawsuit for more than three years since 2020.
Solana’s positive reaction to the federal ruling aligns with the overall sentiment in the crypto market. It also bolsters the claims made by industry giants, Binance and Coinbase, last month when the SEC filed a lawsuit against them. In the lawsuit, the SEC classified several cryptocurrencies, including Solana, Cardano, and Polygon, as securities. Ripple Labs’ recent win has reignited hope among cryptocurrency enthusiasts that other coins may also prevail against the regulator.
Taking a closer look at Solana’s price technical analysis, it is important to note that heading into 2023, the altcoin was experiencing a downtrend that started in November 2021. However, Solana has since staged a strong recovery, surging by more than 175% from its lowest level in 2022. Despite this upward movement, SOL has struggled to break above the crucial resistance level of $30. However, on Friday, SOL briefly breached this level before experiencing a slight pullback.
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Analyzing the daily chart, it is evident that SOL has been on an uptrend for the past few weeks, as evidenced by the ascending channel in yellow. The altcoin has consistently remained above key moving averages such as the 50-day and 200-day exponential moving averages, as well as the 100-day and 200-day simple moving averages. Moreover, the Relative Strength Index (RSI) indicates that SOL is in the overbought zone, while the Moving Average Convergence Divergence (MACD) suggests a continued uptrend.
Based on these technical indicators, it is likely that Solana’s price will continue to rise in the coming sessions, instilling confidence among investors. If SOL surpasses the crucial $30 resistance level, buyers will set their sights on the next resistance at $40. However, if the altcoin falls below the 200-day exponential moving average at $22.50, it would invalidate the bullish thesis.
In conclusion, Solana has experienced significant growth in its price, driven by Ripple Labs’ court win against the SEC. This ruling has provided hope to the cryptocurrency market and has bolstered the confidence of investors. Solana’s technical analysis suggests a continued uptrend, with the altcoin likely to surpass key resistance levels. However, caution should be exercised as the market is subject to volatility and unexpected developments.
