Solana(SOL) Price Sees 80% Surge as “Firedancer” Launches on Testnet

Key Takeaways:

• Following the testnet launch of its scaling solution, Firedancer, SOL price has seen a remarkable 81% surge in its value.
• SOL price performance reaffirms Solana’s reputation as a strong contender in the crypto market, often referred to as an “Ethereum killer,” given its consistent outperformance of Ether (ETH).
• SOL-related investment products have experienced significant inflows recently, although the crypto remains down by around 84% from its all-time high in November 2021.
• The Firedancer testnet is a crucial development for Solana, aiming to enhance speed, reliability, and validator diversity, with its mainnet launch scheduled for the first half of 2024.
• The crypto community is eagerly watching Solana’s journey, driven by the Firedancer testnet, as it strives to cement its position as a formidable competitor to Ethereum.

Solana’s price has surged with impressive gains of nearly 81% over the past 30 days, further strengthening its position in the crypto market. A recent boost of over 30% in the last week has been attributed to the testnet launch of Solana’s highly anticipated scaling solution, Firedancer.

On November 2, SOL price touched nearly $42, marking a significant milestone that hadn’t been witnessed since August of the previous year, according to data from Cointelegraph Markets Pro.

Often referred to as an “Ethereum killer,” Solana has consistently outperformed its rival Ether (ETH), which has posted gains of less than 11% in the past month.

Investment products associated with SOL have also experienced substantial inflows in recent weeks, as reported by CoinShares. However, it’s worth noting that SOL is still down by approximately 84% from its all-time high of nearly $260 on November 6, 2021.

The recent surge in SOL price can be attributed to the testnet launch of Firedancer, announced by Solana Foundation’s executive director, Dan Albert, during the Breakpoint conference held on October 31. This scaling solution, developed by Web3 development firm Jump Crypto, has been in the making since August of the previous year. Firedancer introduces a new validator client for the Solana network, with the primary goal of enhancing speed, reliability, and validator diversity. Its mainnet launch is scheduled for the first half of 2024 and aims to address network outage issues that Solana has faced in the past.

Additional Read: Solana Price Prediction

Solana Price Performance

SOL/USD | Source: TradingView

• When delving into the technical analysis of SOL price, it becomes evident that this crypto embarked on a significant upward trajectory earlier in the year, surging from below the $10 mark and coming close to touching $26.
• During the period from February to May 2023, SOL exhibited remarkable stability, consistently maintaining levels above the critical $20 support threshold on the price charts. However, the situation took a turn in June 2023, as a substantial market downturn led to a SOL price decline to $14.
• Following this dip, Solana’s price showcased an impressive recovery when compared to other cryptos within the top 10 by market capitalization. It rebounded from $14, briefly reaching a high point at $30, and then remained relatively steady around $18 throughout September. A new rally began on September 28, 2023.
• This rally extended throughout the month of “Uptober,” with SOL price increasing from around $24 at the beginning of the month to $39 at the time of composing this article. This represents a remarkable 100% surge since September end.
• In terms of potential upward movements, it’s crucial to keep an eye on the $43.5 and $50 price levels, which also hold significance as psychological resistance barriers.
• On the downside, $32 is poised to act as a support zone for SOL price in the immediate future, aligning with the P level in the Fibonacci pivot levels.

Despite the positive developments, there are concerns of potential selling pressure on SOL price as $56 million worth of the crypto, connected to FTX, was un-staked and transferred to an unknown wallet.  Additionally, an additional $32 million worth of SOL linked to FTX and Alameda Research was moved to a wallet believed to be Galaxy Digital’s designated liquidator.

Read more: FTX Crypto Exchange Collapse

The crypto market has seen other altcoins experience substantial price rallies in the past month, largely due to positive market sentiment. Chainlink (LINK) has gained over 54% in the last 30 days, while Bitcoin (BTC), Avalanche (AVAX), and Near Protocol (NEAR) have posted impressive 30-day gains of 30%, 32%, and 37.5%, respectively.

The crypto community eagerly anticipates how the SOL price journey, fueled by the Firedancer testnet, will unfold as it continues to strive to fulfill its vision as a formidable Ethereum competitor.

Source: CoinTelegraph