Solana battles Cardano for top five as SOL’s market cap crosses $ 70 billion mark

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Solana’s Autumn Rally (SOL) continued on November 3, with its price and market capitalization hitting a new record high.

SOL has jumped 7% in the past 24 hours to $ 236, bringing its market cap to over $ 70 billion for the first time in history. As the token wobbled near all-time highs, it briefly overthrew Cardano (ADA) to become the fifth most valuable crypto asset in the world.

Currently, SOL’s market cap was around $ 69.37 billion, just $ 500 less than ADA’s $ 69.87 billion market valuation.

Top ten cryptocurrencies by market cap (at 1230 UTC, November 3). Source: Messari

Solana joins the enthusiasm for the NFT

Solana battling for the top five cryptocurrencies has followed the resumption of the bullish strength of SOL as the fourth and final quarters of 2021 approached. For example, the native blockchain token Solana has grown over 65% since then. October 1. On the other hand, ADA’s returns over the same period were only 2.13%.

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ADA underperformed mainly on the feeling of “selling the news”. As TBEN covered, the Cardano token started to dive right after it rolled out its highly anticipated smart contracts feature via a so-called Alonzo upgrade on September 13.

Three-day ADA / USDT price table. Source: TradingView

In the days leading up to the hard fork, ADA’s best returns since the start of the year were around 1,630%. At the time of going to press, they were approximately 1,050%. In comparison, SOL’s YTD returns at the time of writing this article were over 12,700%.

Independent market analyst Pentoshi credited the growing number of non-fungible token (NFT) projects on Solana as one of the main reasons for its price boom, recalling an August 16 tweet that accurately predicted a bull run for the token.

Related: Solana’s Secondary NFT Sales Hit Half a Billion Dollars in Three Months

Messari researcher Mayson Nystrom also noted “tremendous growth” in NFTs in the Solana ecosystem, noting that the blockchain has processed $ 500 million in NFT secondary sales volumes since April 2021. Excerpts:

“Whether or not Solana can manifest this initial energy in long-term NFT growth remains to be seen, but current signs present valid reasons to be optimistic about Solana’s burgeoning NFT ecosystem.”

Solana vs Ethereum NFT statistics. Messari

SOL will reach $ 275 then?

SOL’s latest push towards its all-time high also came as a break out of its bullish Pennant structure, as seen in the chart below.

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SOL / USDT Daily Price Chart with Bullish Pennant Setup. Source: TradingView

Bullish pennants appear as price consolidates inside a triangle-like structure after registering a strong upward movement, dubbed Flagpole. Traders usually wait until the price breaks the upper triangle trendline before placing their profit target at a length equal to the height of the mast.

Solana’s flagpole height is approximate, $ 175. As a result, its breakout movement against the Triangle resistance trendline (~ $ 158) prompts SOL to grow an additional $ 175, setting its profit target above $ 275.

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The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN.com. Every investment and trading move comes with risk, you should do your own research before making a decision.