• Solana (SOL) has been in a bear market since reaching its all-time high (ATH) of $260 in November 2021.
• Crypto Tony (@CryptoTony_) recently identified a bullish case for Solana, stating that if bulls can convert the resistance level at $16.20 into a support zone and remain above it, Solana could experience a 19 percent surge to $19.20.
• The Solana ecosystem now faces regulatory scrutiny in the United States following the SEC’s recent focus on digital assets.
Solana (SOL) Under Fire
The Solana (SOL) network has been enduring a macro bear market since reaching its all-time high (ATH) of approximately $260 in November 2021. Despite the relief rally in the crypto bear market earlier this year, Solana’s price failed to surpass the previous FTX levels, unlike other leading digital assets such as Bitcoin and Ethereum.
Bullish Case for SOL Identified
Renowned digital asset analyst Crypto Tony (@CryptoTony_) recently stated on Twitter that Solana bulls must succeed in converting the resistance level at approximately $16.20 into a support zone and maintain their position above it to secure a potential price rebound. According to the analyst, if this scenario unfolds as anticipated, Solana could experience a 19 percent surge, reaching around $19.20 in the following weeks.
Market Sentiment Improving
Over the past seven months, the total value locked within the Solana ecosystem has remained around $250 million, indicating a potential market bottom. Furthermore, the Solana ecosystem has made remarkable progress since the FTX collapse late last year with DeFi projects such as Marinade Finance, Orca DEX, and Lido Finance being launched on its blockchain platform.
Regulatory Pressure Building
However, regulators are now turning their attention towards digital assets with US Securities and Exchange Commission focusing on cryptocurrencies like Etheruem and Ripple by labeling them unregistered securities which have broken certain rules of trading for years without consequence or penalty.. As more countries start taking action against crypto space entities from an enforcement perspective due to security concerns surrounding these virtual currencies further uncertainty will be injected into their markets causing yet another fall in prices across many coins including SOLANA .
Despite facing regulatory pressure from US authorities , SOLANA is still showing signs of recovery thanks to improved fundamentals such as increased adoption through new projects launching on its blockchain networks . If bulls can convert resistance levels into support zones , then SOLANA may experience some upside momentum which could lead to higher prices . It remains unclear whether these positive developments will be enough to counterbalance any upcoming regulations imposed by governments but investors should always do their own research before investing or trading any digital asset .