Solana Price Holds Firm Above Key Support Levels
The Solana (SOL) price is maintaining its position above crucial short-term support levels and is poised to retest the $100 mark. This optimism stems from the recent surge in network activity, with total SOL transfer volumes on the network nearly reaching a staggering $1 trillion in January.
Currently trading around $98, the Solana price has rebounded 6% from its earlier session lows in the $92.50 range.
During late Wednesday and early Thursday trade, crypto prices faced pressure following the hawkish policy announcement by the Federal Reserve this week.
However, the strong network fundamentals and positive technical developments have instilled confidence, leading to a strong recovery in the Solana price.
Increase in Network Activity Signals Growing Adoption
According to data from TheBlock, the number of active addresses on Solana has been rapidly rising in recent days. The 7-day moving average (7DMA) for active addresses stands at 842,000, while the 7DMA for daily new addresses hovers around 520,000, marking a new record high. Additionally, the 7DMA of daily value moved on-chain has surged to $44 billion, its highest level since late 2022.
This surge in on-chain activity can be attributed to Jupiter’s successful JUP token airdrop on the Solana blockchain. Jupiter is a popular decentralized exchange liquidity aggregator based on Solana. The airdrop event released 13.5% of the token’s total supply and instantly created a new crypto unicorn with JUP having a fully diluted market cap of nearly $6 billion.
The Solana network demonstrated its resilience during the airdrop-related activity, further bolstering its growing adoption.
Solana Price Prediction – Retesting Previous Highs and Beyond
Chart analysis suggests that the Solana price is likely to retest last year’s highs in the $126 range. This prediction is supported by SOL breaking a downtrend and successfully bouncing off its 21 and 50-day moving averages (DMAs) in the $93-95 region. If the retest is successful, Solana could potentially see gains of around 30% from its current levels.
However, this could just be the beginning for the Solana price. Despite being over 60% lower than its 2021 record highs, the combination of increasing adoption and a bullish crypto market suggests that Solana has the potential to surpass its previous peak levels. Some predictions even speculate a market cap of $200 billion for Solana during this bull market cycle, which would translate into 5x gains for the price of SOL.
Crypto Alternatives to Diversify Your Investments
While Solana shows promising prospects, it is always wise to consider alternative investments for diversification purposes. One such strategy is investing in high-risk, high-reward crypto presales. These presales involve buying tokens of emerging crypto projects to support their development. Historically, presales have delivered significant gains to early investors.
If you can identify promising presale projects with strong teams and innovative visions, the risk/reward ratio can be favorable. The team at Cryptonews regularly evaluates presale projects to assist investors in making informed decisions.
Hot Take: Rising Adoption and Bullish Market Fuel Solana’s Potential
The Solana (SOL) network has experienced a surge in network activity, with increasing numbers of active addresses and record-high on-chain volumes. This growth is fueled by successful events such as Jupiter’s token airdrop. The Solana price has shown resilience, holding firm above key support levels and eyeing a retest of $100. Chart analysis suggests the possibility of retesting last year’s highs and even surpassing them. With growing adoption and a favorable crypto market, Solana’s price predictions remain optimistic, with potential gains of 5x or more. However, it’s important to diversify your investments and consider alternative opportunities like crypto presales for potential near-term gains. Overall, Solana’s rising adoption and positive market conditions position it as a promising cryptocurrency in the current landscape.
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