Solana’s (SOL) recent recovery after the FTX-fuelled decline has been nothing short of impressive, with a staggering 76.21% gain in the past month. 56.31% of them were in the last 2 weeks, and 28.53% were only in the last week.
Despite hitting a low of $8.14 on December 29, the token has seen a dramatic resurgence thanks to the launch of BONK, the blockchain’s first popular token. meme coin, on December 25, and is now trading around $21. But the burning question on many investors’ minds remains, will this uptrend continue or is it just a temporary BONK-backed rally?
Solana Price Rises With Bon Meme Coin Rescue
The past year has been challenging for him solana, to put it mildly, saw a massive drop in the value of the cryptocurrency following the FTX scandal, which saw its major backer go bankrupt. To add to the woes, in late December, the DeGods and y00ts projects, two of the most popular NFTs on the blockchain, announced that they would move Ethereum and Polygon in the first quarter of 2023.
However, despite these setbacks, a ray of hope has emerged in the form of the BONK token. BONK, a meme-inspired token similar to Shiba Inu or Dogecoin, was launched on December 25, 2022, and immediately saw SOL’s price jump by 34% within 48 hours.
BONK price rallied over 3,000% but crashed again a few days later and is now down more than 73% from its all-time high. Despite this, it still has a respectable market cap at $48,515,619, and has already brought attention back to Solana, which has become the 11th most popular cryptocurrency by market cap as of writing.
Solana-powered platforms like Magic Eden have shown interest in integrating BONK as an accepted currency on their platforms, and NFT projects like Jungle Cats have promised holders the opportunity to earn BONK on their staking. nft,
However, it remains to be seen whether the hype surrounding BONK will be sustainable in the long term. Only time will tell how this new token will affect the future of Solana, but for now, it is certainly giving the community something to get excited about.
Solana (SOL) Price Prediction and Technical Analysis
SOL is consolidating around the $20 level and trading above its 20-day, 50-day, and 100-day EMAs, which suggests that the short- to long-term bias remains bullish for this cryptocurrency. The next EMA-related target for SOL is the 200-day moving average, which is currently at $30.44.
Volume currently stands at 2.511 million, which is lower than the average volume of 9.148 million. Solana is priced at $21.13 at the time of writing, a decrease of 3.58% for the day. It is currently forming a Bearish Inverted Hammer after closing with losses for the last two days, suggesting that the decline may still continue.
Considering the volume and price action, it suggests that for trading activity cryptocurrency Relatively low, that the breakdown does not find support, and that it may retrace after a run-up of more than two weeks.
Furthermore, the RSI stands at 65.93 after posting a high of 87.84 on Jan 14. Since then, the price is moving lower along with the overall RSI as well as unsuccessful attempts to break $24.40. A potential support where the RSI could bounce is the critical area of the RSI 60.
The MACD indicator is currently at 2.55, with a signal line at 1.93 and a histogram of 0.63. This suggests that Solana is trending higher in the long term, but the divergence between the MACD and the signal line has been narrowing recently, indicating that the bullish momentum may be weakening.
Plotting Fibonacci retracement levels from their recent run-up reveals levels with a high probability of acting as potential support. After getting rejected from the FIB 0.236 level of $21.06 in today’s trading activity, the next potential support lies at the FIB 0.382 at $18.58 which coincides with the previous resistance which has now moved from the $17.64 support area to $18.86.
If the support successfully holds, the next potential target for the cryptocurrency is the area between $26.89 to the psychological resistance of $28.
The provided technical indicators suggest that Solana price is in a retracement phase, but with a strong long-term uptrend. Traders and investors should be cautious about holding positions with this current price action, as SOL prices are likely to move lower in the coming days. This is especially true if The crypto market as a whole has come to a halt,
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