Solana (SOL) Emerges as Crypto to Watch: Surpasses XRP, Secures Spot on Global Index
- Solana (SOL) witnesses an impressive surge of 120% in December, outperforming competitors and securing a spot on the Hong Kong Virtual Asset Consortium’s top five global crypto index.
- Hong Kong’s strategic move to replace XRP with SOL aligns with broader efforts to boost the crypto industry, with a focus on welcoming spot crypto exchange-traded funds (ETFs).
Solana (SOL) has emerged as a standout performer in the crypto market, experiencing a remarkable surge of nearly 120% in December. This exceptional performance not only intensifies its rivalry with Ethereum (ETH) but also elevates its status globally. Solana’s ascendancy earned it a coveted position on the Hong Kong Virtual Asset Consortium’s (HKVAC) top five global crypto index.
In a strategic move, the HKVAC decided to replace XRP with SOL in its top five indexes, citing Solana’s outstanding performance and market capitalization. Solana’s rise to the fifth position in the list of cryptocurrencies by market capitalization played a pivotal role in this decision, pushing XRP to the sixth spot. The consortium, responsible for evaluating digital asset trading platforms and crypto market indexes, emphasized maintaining a constant number of constituent assets in its top five list.
Hong Kong’s Crypto Industry Boost
The decision by HKVAC aligns with Hong Kong’s broader efforts to strengthen its crypto industry. The country’s financial regulator has expressed readiness to welcome spot crypto exchange-traded funds (ETFs), following the recent approval of spot BTC ETFs by the US Securities & Exchange Commission (SEC). Advocates in Hong Kong are urging swift regulatory approval for their spot BTC ETFs to stay competitive in the global cryptocurrency market.
Despite recent corrections in the overall crypto market, Solana’s outlook remains bullish. The cryptocurrency has consolidated within an ascending parallel channel, with technical indicators suggesting a positive trajectory. The Relative Strength Index (RSI) points towards increasing buying strength, potentially catalyzing further gains for Solana.
In a highly bullish scenario, Solana’s price could surpass the psychological level of $100.00, targeting the $112.38 resistance level or potentially reaching the range high at $126.36, reflecting a remarkable 30% climb from current levels.
However, caution is advised as bears exert pressure on SOL. The Awesome Oscillator (AO) and Moving Average Convergence Divergence (MACD) indicators show signs of a bearish trend. If profit-taking intensifies, Solana’s price may dip below the immediate support at $89.02, potentially extending to the $68.03 support floor, representing a 30% decline.
