 ▲ Solana (SOL) © |
Solana (SOL) is leading a fierce rally, outperforming the broader cryptocurrency market’s recovery on the back of strong tailwinds from a revival in the Layer 1 sector and the upcoming exchange-traded fund (ETF) staking rewards.
According to CoinMarketCap on February 13 (local time), Solana surged 9.56% over the past 24 hours to reach $84.61. Analysts say this impressive performance goes beyond simple market correlation, driven instead by a rotation of capital into Layer 1 tokens combined with clear utility-based catalysts.
The key driver behind the spike is the strength of the Layer 1 theme, which rose 4.95% over 24 hours to take center stage in the market, along with 21Shares’ spot Solana ETF. News spread on social media that 21Shares will begin distributing staking rewards on February 17, adding a yield component to its investment appeal and triggering an explosive influx of buying pressure.
The broader cryptocurrency market’s recovery, which gained 4.31% with Bitcoin (BTC) climbing 4.63%, further amplified Solana’s rally. Technically, Solana reinforced bullish conviction by breaking above and holding its 7-day and 30-day simple moving averages at $84.47 and $80.13, respectively. However, the Relative Strength Index (RSI) stands at 77.05, indicating overbought conditions and raising the possibility of short-term consolidation.
Experts warn that while the current bullish structure remains intact, profit-taking could emerge following the sharp short-term surge. If Solana maintains support at the first key level—the 23.6% Fibonacci retracement at $83.39—it could attempt a move toward the 161.8% extension level at $90.90. Conversely, if the 61.8% level at $80.03 breaks down, the short-term uptrend could reverse, increasing the risk of a deeper correction.
Ultimately, whether buying pressure continues after the February 17 staking event will be the decisive factor for Solana’s short-term trajectory. If it overcomes overbought conditions and firmly establishes support above $83.39, this rally could mark not just a rebound but a launching pad for a new upward phase.
Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.