- Solana’s Bullish Momentum Sustains Amid Strong Social and Whale Interest.
- Scalability Issues, Centralization Risks Challenge Solana’s Global Backbone Viability.
Solana (SOL) has been on an upward trajectory, defying the overall “Uptober” slump that hit many altcoins. Recently, Solana reached a three-month high at $179, marking a 13% increase in the past month and a 2% rise within 24 hours, with trading volumes also up by 28%. The question remains, can this rally continue into 2025, as analysts predict.
Technical indicators currently suggest bullish momentum. The Moving Average Convergence Divergence (MACD) line shows a bullish crossover, and Solana’s Relative Strength Index (RSI) stands at 63, indicating strong buying interest without approaching overbought levels.
SOL Price Analysis, Source: Sanbase
Such technical trends suggest SOL could continue to climb in the near term, boosted by the increased attention from social channels and whale investors. Notably, Solana’s social engagement has risen to 3.97%, enhancing its appeal within the crypto community.
Snags in the Solana Bull Run
Despite Solana’s growth, analyst Ryan Berckmans raises concerns regarding the blockchain’s capacity to sustain its momentum. Berckmans highlights that Solana shifted its initial “monolithic” approach to accommodate Layer 2 (L2) solutions. Although marketed as an L1 network capable of handling vast transactions, Solana now offers “Network Extensions” akin to L2s. This shift underscores a potential limitation in it’s scalability as a global financial backbone.
A major constraint, according to Berckmans, is Solana’s dependency on a single client, Agave Rust. For a decentralized, global-scale network, three independent clients with balanced stake distribution are often recommended. It’s second client, Firedancer, faces delays due to a lack of comprehensive protocol specifications and support from the research community. Moreover, Solana’s high bandwidth requirements — 10Gbps upload speeds — could introduce centralization risks that challenge its scalability.
While it has shown resilience and growth potential, significant obstacles remain. As major corporations like Coinbase and Visa adopt Ethereum L2 solutions, SOL may struggle to position itself as a global financial network. For now, its trajectory remains cautiously optimistic, though achieving a price rally in 2025 may depend on overcoming these critical infrastructure and decentralization hurdles.
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