Is Solana Price Heading to $200?
The Solana price is currently forming a narrow range above $100 as it seeks stability during a correction. However, with strong fundamentals and a positive technical outlook, it is likely that the SOL price will surpass the $150 mark. The 24-hour trading volume for Solana is $1.19 billion, indicating a 19% gain.
Over the past four months, Solana has seen a remarkable surge in value, increasing by 626% from a low of around $17.3 to a high of $126.2. This surge has made Solana the fifth largest cryptocurrency by market capitalization, currently valued at about $46.2 billion.
This increase in value can be attributed to key developments within the Solana ecosystem, particularly in the decentralized finance (DeFi) sector. The launch of the meme coin BONK and the Solana Saga Phone have also contributed to increased visibility and adoption. These factors have led to an increase in fundamental network activities, such as more coin holders and whale accumulation.
The current corrective phase for SOL is seen as a healthy part of the market cycle, with the currency aiming to maintain its value above the crucial support level of $100 and the 23.6% Fibonacci retracement level. This dip is expected to consolidate buyers and potentially drive the price to new heights.
In the latest trading session, Solana saw a 5.5% intraday increase and formed a morning star candlestick pattern. If SOL manages to surpass the immediate resistance level of $107, it could retest the $126 mark, indicating a more substantial recovery.
Analysis of the daily chart shows that Solana’s recovery trajectory resembles a rounding bottom pattern. This pattern often indicates gradual accumulation, which could drive the price towards the neckline resistance at $260, signaling a new phase of growth for the cryptocurrency.
Is SOL Price at Risk Of Heavy Sell-off?
Regarding the Solana price downtrend from November 2021 to December 2022, the current recovery has managed to reclaim a 38.2% loss according to the Fibonacci retracement tool. To confirm a sustainable uptrend, buyers must break past the 50% mark at $134.3. This breakout would indicate that buyers are gradually gaining control over the asset, but also make it susceptible to sudden sell-offs.
- Moving Average Convergence/Divergence: A bearish crossover between MACD (blue) and Signal (orange) suggests a correction sentiment is active.
- Exponential Moving Average: The 20-day EMA acts as dynamic support and provides a safety net for strong bullish momentum.
Hot Take: Solana’s Potential for Growth
Solana has shown strong performance and growth over the past few months, becoming one of the top cryptocurrencies by market capitalization. With its strong fundamentals, technical outlook, and increasing network activities, Solana has the potential to continue its upward trajectory.
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