BC. GAMEClaim 5BTC Now

  • Rainbet

Solana rates have increased significantly, a sign of a new rally may be brewing

Fast Take
  • SOL shows signs of recovery, with high-frequency trading (HFT) favoring gains.
  • Indicators such as RSI and Aroon suggest a possible bullish trend for SOL.
BC. GAMEBCGAME - The best casino, 5BTC free daily bonus!BC. GAME Free 5BTC Daily Bonus!
Register now

In recent weeks, the Solana (SOL) protocol has seen a significant increase in its transaction fees, indicating a period of intense activity on the network. According to recent data, rates increased by a staggering 100%, jumping from $99.724 on November 14th to $130.000 on November 22nd.

This increase in fees does not appear to be a disadvantage for the protocol. Just like Ethereum (ETH), Solana fees are determined by the network, based on congestion and historical yield. Interestingly, about half of each transaction fee is eliminated (“burned”), while the rest is distributed to validators responsible for processing transactions.

An interesting comparison arises with Ethereum, where Solana, despite showing an increase in fees, still maintains a more affordable transaction cost. This increase in rates suggests greater activity on the Solana network, a hypothesis supported by the 132% growth in the number of daily active users over the same period.

Regarding the value of SOL, the currency has shown signs of recovery, driven by the broader trend in the cryptocurrency market. In the last 24 hours, SOL reached US$58,16. Previously, MS2 Capital pointed out that the $57,55 level would be crucial for the coin.

Interestingly, according to analysis from risk accelerator web3, low-frequency trading (LFT) could harm SOL, leading to a possible drop to $46,48. On the other hand, high-frequency trading (HFT) could favor additional gains for the coin. HFT indicates an increase in large transactions executed quickly, while LFT implies fewer trades over a cycle, with longer positions.

Read also   Robert Kiyosaki predicts an impressive rise in Bitcoin; $100.000 in the next few months?

In the current outlook, SOL appears to be leaning towards HFT, evidenced by a high order-to-trade ratio. Buying pressure on the SOL/USD 4-hour chart has been prevalent since November 22nd.

Additionally, SOL's Relative Strength Index (RSI) was recorded at 54,54, with a reading above 50 signaling the possibility of the uptrend continuing. If the RSI continues to rise, SOL could retest the $62 mark. Currently, the Aroon Up (orange indicator) is at 85,71%, while the Aroon Down (blue) is at 42,86%, a sign that a new uptrend may be forming.

For investors, Aroon Up remaining above 70% and Aroon Down falling below 30% could confirm this trend, suggesting profitable entry opportunities between US$55 and US$60, with a close eye on the medium term.

Disclaimer: The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.

Related articles