Solana Price Retraces After Weekend Surge
The price of Solana (SOL) has dropped by 4.5% in the past 24 hours, falling back to $104.89. Despite this dip, SOL has seen significant gains in recent weeks and months, with an 8% increase in the past week, a 12.5% increase in the past month, and a remarkable 400% gain over the past year.
While some indicators suggest that SOL may continue to correct further, analysts expect the overall crypto market to remain bullish due to rising Bitcoin ETF inflows. This could result in SOL experiencing strong gains after a brief correction.
Market Indicators Point to Potential Further Decline
When looking at SOL’s chart, it’s evident that the coin may experience further declines in the near future based on its indicators. The relative strength index (RSI) has fallen from around 65 to 55, indicating a loss of momentum.
Additionally, SOL’s 30-day moving average is still rising beyond the 200-day average, but with the current price drop, both averages could potentially decrease in the next few weeks.
However, it’s unlikely that SOL will experience a significant drop since it has maintained strong support levels since December. The recent decline is not expected to be severe.
Potential Risks for Solana
While SOL continues to show promise in the medium- and long-term, traders should be cautious of potential network outages. Last week, the Solana blockchain experienced a five-hour downtime after nearly a year of uninterrupted operation. Another outage within a short period could negatively impact the price of SOL.
Solana Price Prediction: Bullish Outlook
Despite the risks, growing optimism and increased usage of Solana are expected to drive the price of SOL up to $150 by spring.
Exploring Small-Cap High-Potential Alts
For traders seeking above-average gains, it may be worthwhile to consider smaller cap altcoins that have the potential for strong growth as they list on new exchanges. One such altcoin is Sponge (SPONGE), which recently launched its second version, SPONGE V2.
SPONGE V2 offers an improved staking model with variable yields based on the number of stakers and their stakes. Additionally, SPONGE V2 serves as the native token for an upcoming P2E racing game set in the Sponge universe, providing more utility for the coin.
Investors can purchase SPONGE V2 on Uniswap or through the official Sponge website. Since its listing, the token has already gained 86%, and further listings are expected to drive its price higher in the coming weeks.
The post Solana Price Prediction Following Recent Rally – What Do Market Indicators Suggest? appeared first on Cryptonews.
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