Solana (SOL) Price Reaches $100 Again
The price of Solana (SOL) has climbed back above $100, indicating the potential for further gains. In December, SOL, along with other Layer-1 Proof of Stake (PoS) networks like Avalanche (AVAX) and Cardano (ADA), experienced significant price increases. However, SOL experienced a 33% drop from $126 to $85 between December 25 and January 7. Nevertheless, since January 8, SOL has seen a 20% rebound and is now trading above $100.
Increasing Staking Activity Signals Bullish Sentiment
Investors have staked an additional 4.51 million SOL this week, following a pattern similar to the one preceding SOL’s rally in December. This increase in staking activity is considered a bullish signal for several reasons. Firstly, it enhances the security and efficiency of the PoS network. Additionally, it reduces the number of tokens available for trading, creating deflationary pressure on the market supply. The previous rally in SOL price was accompanied by a significant increase in staking activity, suggesting a potential price breakout in the coming days.
Forecast: Can Solana Price Reach $150?
If SOL can overcome resistance at $117, it may have the potential to reach $150 in the near future. However, a breakout above this resistance level is necessary for this bullish scenario to play out. On the downside, if SOL falls below $85, it could invalidate this optimistic forecast. Nonetheless, there is support around the $90 level that could prevent a further decline.
Hot Take: Solana Shows Potential for Continued Growth
Solana’s recent price movements and increasing staking activity indicate potential for continued growth. The climb back above $100 and the positive market sentiment surrounding Bitcoin spot ETF approval set the stage for a possible rally in the coming weeks. If historical patterns repeat, the increase in staking activity this week could be a catalyst for bullish price action. Furthermore, if the demand for altcoins increases, SOL’s reduced market supply may lead to an accelerated price breakout. All eyes are on SOL as it aims to surpass previous highs and reach new milestones.
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