Solana (SOL) Price up Nearly 30% in a Week as It Moves to Overtake Dogecoin (DOGE) Market Cap

While the cryptocurrency has been fast recovering from the failure of FTX and as developers continue to add to it, the price of Solana ($SOL) has increased by almost 30% over the last seven days to trade above the $26 level.

Solana has reportedly outperformed the majority of other leading digital assets over the past few weeks, rising from a low around $10 in late 2017 to its current high amid a broader market recovery.

Solana is presently the 11th largest digital asset by this criteria, surpassing Polkadot ($DOT), which has a $8.7 billion market cap, but trailing the meme-inspired cryptocurrency Dogecoin ($DOGE), which has a market valuation of $11.73 billion. Significantly, SOL has been outperforming DOGE.

Former engineers from Qualcomm, Intel, and Dropbox founded the blockchain network Solana, which uses the delegated Proof-of-Stake (dPoS) consensus method to achieve high performance. The network uses an innovative method of sorting transactions that significantly boosts its throughput and speed.

Blockchain networks have historically struggled with scalability, and the ones that have succeeded have run into centralization problems. Yet the challenge of building a decentralized network with quick confirmation times and minimal transaction costs was addressed with the launch of Solana in 2017.

The cryptocurrency generated a 140% return in January, according to the most recent Asset Report from CryptoCompare, ending the month at $23.9. With an opening price of $36.9 on November 6th, the token’s worth had decreased as a result of FTX’s collapse, but it is now gradually increasing.

SOL topped its 50-day moving average at the start of the year and is now closing in on its 200-day moving average, which ended the month at $26.1, according to the study.

Since it aids in identifying the broad, long-term market trends, the 200-day moving average is regarded by traders and market experts as a crucial technical indicator. A moving average is an indicator that aids in “smoothing out price data by establishing a constantly updated average price,” according to Investopedia.

The indicator reduces the influence of arbitrary, short-term price swings on asset prices, and the 200-day moving average is viewed as either a strong support level or a strong resistance level depending on whether the price of the asset is above or below it. An asset is said to be in an uptrend if it is above the 200-day moving average.

The DOGE cryptocurrency has witnessed some observable whale accumulating despite its minor moves. According to a report by CryptoGlobe, a sizable whale on the network recently gathered a sizeable amount of tokens, to the point where they are now the 20th largest wallet on the cryptocurrency’s blockchain, holding more than 700 million DOGE.