According to the latest data, Solana (SOL) price is currently leading the market’s altcoin momentum, with an increase of 22.55% to $16.4. So what’s behind Solana’s rise? Will the rise continue? Here are the details…
Popular altcoin jumps
While the growth in Solana is not a standalone event, the extra bounce in the coin indicates continued momentum, given that the coin has had a pretty good start to the year. With current growth spurts, Solana rallied as high as a 30-day high of $16.43. Thus, it is on its way to surpass the $17 resistance level. While Solana is still a long way off from its all-time highs, the coin’s current bullish outlook suggests it could be positively triggered to help the investor community regain these historic highs.
With this growth, the community can predict three major events associated with Solana. According to analysts, there could be a short-term price discovery run anywhere from the coin’s price point and if it reaches $17; Solana will have recorded its first historical price for 2023. Also, eyes are on Solana to see if her current momentum will help her. It beat Polygon (MATIC) to regain its place among the top 10 cryptocurrencies. According to experts, investors should also watch the coin’s main support, $14.5; if this point is exceeded, it can lead to a large sell-off in general.
The BONK effect should not be ignored either.
The growth in Solana is a result of the increase in addresses that buy and interact with the cryptocurrency. Specifically, we could argue that Solana’s embrace of this advanced ecosystem is linked to the recently popular meme coin Bonk (BONK). As we reported as Kriptokoin.com, Bonk recorded transactions in the past week, surpassing Ethereum. With these purchases, SOL is also spent as gas fee. The hype around BONK may have contributed in some ways to Solana’s performance so far this year.
Also, the remarkable rise of the Ethereum killer in the last 24 hours can be attributed to the increase in the daily trading volume of SOL. Currently, SOL’s daily trading volume has experienced a 355.87% increase compared to yesterday’s trading volume. Renowned analyst Smart Contracter tweeted his prediction for the price of SOL in the coming weeks. According to the tweet, SOL’s price rose 112 percent from its lowest level. “This is a clear inverted V formation,” the analyst said. Also, “5. wave impulsive movement,” he shared his technical analysis.
The analyst believes that the SOL price will experience an “abc” correction that will see it pull back by around 25-35 percent. The tweet concluded that the fix in the coming weeks would be “probably a drop to buy.” Looking at the daily chart of SOL, its price is currently trading above the 9-day and 20-day EMA lines and managed to turn the $13.73 resistance level into support. The relative positions of the 9-day EMA and the 20-day EMA lines and the RSI indicator both indicate that the current uptrend is continuing.