Anyone who has recently looked at the charts will have noticed that Solana (SOL) has been experiencing an impressive uptrend lately. The digital asset had grown from where it was trending around the $88 price range and has moved above $100 again. While this is a welcome trend for the market, especially for Solana investors, let’s look at the factors that led to this uptrend.
What is Solana pushing?
The Solana blockchain on its own has proven to be a powerful contender for the best blockchains in the space. Taking the decentralized financial space (DeFi) by storm, it quickly soared in terms of value to become one of the largest cryptocurrencies in terms of market cap. This growth has been massive, but has also had its setbacks as it followed the market during the recent downtrend.
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However, Solana has started to break out of this low momentum in recent days. The growth of the network and its utility has been the main driver of its high value and continues to be the case.
A recent announcement by Krafton, the developer behind the insanely famous PUBG series, that it was teaming 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, based in South Korea, has been given official rights by the network to develop these games as part of the agreement that both parties have agreed to. Bringing together the interactive nature of Krafton games and the speed/convenience of blockchain technology.
SOL price rises
After the news of the partnership came out, Solana’s award was quick to respond. The digital asset broke out of the high range of $80 and landed above $103 in the next few hours. This rally was to continue through Friday as the price of the cryptocurrency eventually peaked above $104 before plunging back down.
SOL price is trading at $98 | Source: SOLUSD on TradingView.com
Nevertheless, the rally has meant 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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At the time of writing, after a minor dip, SOL is still trading at just over $98. Short-term indicators are bullish for the cryptocurrency. However, it still needs to beat the resistance at $105 to land on another bull trend.
Featured image of MARCA, chart from TradingView.com