Anyone watching the charts recently will have noticed that Solana (SOL) has been on an impressive uptrend recently. The digital asset had grown from where it had been trending around the $88 price range and has once again made it above $100. While this is a welcome trend for the market, especially Solana investors, we take a look at the factors that have led to this uptrend.
What Is Pushing Solana?
The Solana blockchain on its own has proven to be a powerful contender for the top blockchains in the space. Taking the decentralized finance (DeFi) space by storm, it quickly rallied in terms of value to become one of the largest cryptocurrencies by market cap. This growth has been immense but has also had its setbacks as it followed the market during the recent downtrend.
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However, Solana has begun to break out of this low momentum spiel in recent days. The growth of the network and its utility have been the main driver behind its high value and this continues to be the case.
A recent announcement from Krafton, the developer behind the insanely famous PUBG Series, that it had teamed up with Solana to create blockchain and NFT games recently shook the space. This gaming company plans to develop blockchain-based games and they will all be on Solana.
Krafton which is located in South Korea received official rights from the network to develop these games as part of the agreement decided on by both parties. Bringing the interactive nature of Krafton games and the speed/ease of blockchain technology together.
SOL Price On The Rise
After news of the partnership broke, Solana’s price had quickly responded to it. The digital asset broke out of the high $80’s range and landed over the $103 in the next couple of hours. This rally would continue into Friday as the cryptocurrency’s price had eventually peaked above $104 before cascading back down.
SOL price trading at $98 | Source: SOLUSD on TradingView.com
Nevertheless, the rally has spelled good news for Solana. The digital asset is now trading above the 50-day moving average and sentiments towards the smart contract platform are beginning to shift.
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As of the time of writing, SOL is still trading at a little over $98 after a small dip. Indicators are bullish for the short term for the cryptocurrency. However, it still needs to beat resistance at $105 to land on another bull trend.
Featured image from MARCA, chart from TradingView.com