Solana has been one of the top performers in the cryptocurrency market, gaining 89% in 30 days, 131% in 14 days, and 63% in 7 days. Given the claims that the SOL network is failing, a small increase in the token price is needed to win back investor support. After falling to a low of $8.01 in December, its price has risen dramatically in recent weeks and is now trading above the $20.00 level.
Solana grows after months.
When Solana’s native token SOL hit a 52-week low of $8.14 on December 29, the cryptocurrency was already on the brink of collapse before the end of 2022. However, the market has since turned around and is currently in his favour.
Related reading: Solana (SOL) continues to shine with a 43% gain over the past week.
The release of BONK, the first meme coin on the blockchain, in late December also contributed to Solana’s price increase. MemeCoin’s market cap reached $200 million as word spread but faded to $55 million at press time. But SOL hasn’t slowed down.
SOL needs to close above the 200-day simple moving average of $27.59 and the exponential moving average of $30.25 to confirm this trend reversal. However, this close could signal a continuation of the positive momentum and set the stage for higher prices.
Although the RSI has moved into bullish momentum at 73, the MACD is still well above its best values. Therefore, this lends credence to the idea that another increase is possible.
On-balance volume (OBV) has also risen dramatically since the start of the January rally, reaching the highest levels not seen since July-August 2022. It is standard for the OBV to go up before a breakout, but all other indicators should still hold steady.
According to CoinMarketCap, The market cap for SOL was $8.62 billion as of January 18, when it was trading at $23.25 on 24-hour volume of $902 million. The price of SOL has risen more than 200% from its low on December 18.
Solana is catching the positive trend.
To establish this trend reversal, SOL must close above the $27.59 and $30.25 200-day simple and exponential moving averages. However, with this close, positive momentum appears to be accelerating, which could lead to further price increases.
According to Coin Codex Technical analysis, the price of SOL will fall over the next few days, reaching $18.29 on February 1st. This would represent a 20% reduction from current levels.
Solana currently has the fastest growing developer community, with 2,000 developers expected by 2022. Reports By Electric Capital. This can help confirm the bullish trend of the asset.
A new report by 1/ @ElectricCapital It shows that Solana is the fastest growing developer ecosystem, surpassing 2,000 total developers in 2022. It is second only to Ethereum in raw numbers.
Let’s dig into the numbers.https://t.co/HQvPbQzQD2 pic.twitter.com/xV6pnoT7db
— Solana (@solana) January 17, 2023
This record ranks SOL as the second most valuable cryptocurrency, behind only Ethereum (ETH). Still, it’s too early to tell whether this gain is sustainable or just the start of other rallies.
However, while Solana’s price gains over the past two and a half weeks have been spectacular, there is still room for the cryptocurrency to swing either way.
Featured image from Changeli, chart from TradingView.
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