Solana (SOL) Breaks Multi-Month Trend As Firedancer Hits Testnet

The Solana price is currently experiencing a breathtaking rally. Since marking a bottom below $8 on December 29, the SOL price has risen more than 395%. And news from the Solana Breakpoint conference, which is currently being held in Amsterdam from October 30 to November 3, 2023, further fueled the price yesterday. In the last 24 hours, the price has risen 7.5%, and a whopping 23% in the last seven days.

Firedancer Launched On Solana Testnet

Central to the current excitement is the launch of Firedancer on Solana’s testnet. This new validator client, designed for the Solana blockchain, promises to significantly improve the scalability of the network, diminish latency times, and overall enhance network performance.

The brain behind Firedancer Solana is Jump Crypto, a division of the Jump Trading Group, dedicated to pioneering solutions in the blockchain space. Their vision for Firedancer is comprehensive. It is designed to refine the Solana network across all tiers, starting from its foundational consensus mechanism to its broadest performance metrics. Ultimately, Firedancer aims to scale Solana to one million transactions per second (TPS).

Highlighting the criticality of Firedancer to the future roadmap of Solana, Dan Albert, Executive Director of the Solana Foundation, proclaimed during his live stage appearance at the conference, “These guys have been hustling hard. Really did a lot of work, working around the clock in the last couple of weeks and I am really excited to announce that right now the first version of Firedancer is live on testnet.”

Validating this enthusiasm, Raoul Pal, CEO and co-founder of Real Vision Group and former Goldman Sachs executive, expressed his bullish outlook, stating:

Firedancer is a VERY big deal, not just for Solana but for blockchain technology overall. It is a quantum leap in speed (10x faster than the fastest blockchain today) whilst increasing security and robustness of the Solana Virtual Machine [SVM]. We’re eagerly awaiting its migration to Mainnet in the summer of 2024.

Pal further encapsulated the potential of Solana and Firedancer in a recent conversation with Scott Melker. He opined, “I’ve been observing the charts, particularly Solana versus ETH (SOL/ETH) and Solana versus Bitcoin (SOL/BTC), and it unmistakably resembles a rocket ship in its ascent. It’s truly astonishing.”

SOL Price Breaks Multi-Month Trend

However, in the midst of this euphoria, some analysts urge caution. With SOL’s price surging to touch a 1-year high of $39.88 yesterday, analyst Pentoshi offered a sobering perspective, noting, “SOL takes out these equal highs at the top of the range and in the next couple weeks likely a chance to refuel at the mid-range at $32.xx.”

In addition, the 1-day chart shows that SOL broke out of an ascending trend channel (black) in a very bullish manner. SOL rose yesterday above the late October high of $38.78, which the price marked just before it plummeted in the wake of FTX’s collapse, losing more than 68% in four days.

The next few days will be all about closing above $38.78 for the SOL bulls. If this succeeds, the Fibonacci extension level of 1.618 at $57.85 could be the next major target. Otherwise, a correction toward the 0.786 Fibonacci retracement level at $32.18 could be in the cards.

Featured image from Shutterstock, chart from TradingView.com