Solana broke above $200 as its rally appears unstoppable. In the following, we take a closer look at a few interesting technical indicators. They might provide some information as to why the price of SOL is up today.
Key Support levels: $163
Key Resistance levels: $259
1. Higher Highs on Volume
When the price rallies on higher volume – it is a very bullish signal. It shows strength, and Solana is currently singlehandedly dominating the crypto market. It also broke above $200.
Chart by TradingView
2. All-Time High in Sight
Solana’s all-time high is $256. Considering the price is already above $200 at the time of this post, there is very little left to stop it from reaching that key resistance. If buyers break above that level, then SOL will enter price discovery.
Chart by TradingView
3. Bullish Momentum Intensifies
The daily MACD moving averages are expanding as they move higher. This is another sign of strength, and the current momentum gives no indication of exhaustion. Until the histogram makes a lower high, there is little reason to be concerned.
Solana broke above the key resistance at $126 and in the process made a new local high. In the following, we take a look at a few technical indicators that might provide some insights into why SOL’s price is up today.
Key Support levels: $126
Key Resistance levels: $163
1. Resistance Turns into Support
The resistance at $126 was overrun by buyers today and they managed to turn it into a key support. If this level holds, then the next target is found at $163. Since Solana just made a higher high, the price action is bullish.
Chart by TradingView
2. Volume Returns
Today’s volume reached levels not seen since January and turned the momentum indicators bullish. With buyers back in control of the price, Solana has a good chance at higher levels.
Chart by TradingView
3. Bullish Cross on MACD
The daily MACD made a bullish cross after some hesitation yesterday. This confirms the bullish bias and sets the stage for Solana to move to the next key target at $163, as long as buyers keep this momentum.
Solana’s SOL token has surged by 15% in the past 24 hours, reaching a 20-month high of over $88 and becoming the fifth-largest cryptocurrency with a market capitalization exceeding $37 billion, surpassing Ripple’s XRP.
The rally may be attributed to the thriving Solana ecosystem, including high trading volumes, rising daily active users, and significant NFT sales, with Solana outperforming Ethereum in NFT sales volume over the past week.
Despite SOL’s growth, there is a caution against FOMO among investors. On the other hand, analysts like Crypto King and Jacob Canfield remain bullish, suggesting potential values of $300 and $1,000, respectively.
SOL Hits a New Yearly High
The revival of the cryptocurrency market continues, with some digital assets launching real bull runs. One example is Solana’s native token – SOL – which has soared by 15% in the past 24 hours, tapping a 20-month high of $88 (per CoinGecko’s data).
SOL Price, Source: CoinGecko
In addition, the coin’s market capitalization exceeded the $37 billion mark. Thus, SOL became the fifth-largest cryptocurrency in the entire realm, surpassing Ripple’s token – XRP.
What Stands Behind SOL’s Rally?
One factor behind the latest uptrend of the asset could be the thriving Solana ecosystem. As observed on DefiLlama, trading volume on the blockchain protocol has been going through the roof in the past few weeks. It has surpassed $1.5 billion in the last 24 hours and the $9 billion mark on a weekly basis.
Source: DefiLlama
Solana DeFi daily active users (DAU) have also been on the rise lately, exceeding the 200,000 level from December 14 onwards.
Last but not least, NFT sales have also been booming on Solana. As revealed by CryptoSlam, Solana NFT sales volume in the past seven days has spiked to almost $105 million. Ethereum, on the other hand, has fallen behind with approximately $80 million registered for the same period.
Watch Out for FOMO
It is worth noting that SOL’s rapid price increase as of late might create the so-called FOMO (“Fear of Mission Out”) effect. In other words, some investors may get captured by the valuation surge and hop on the bandwagon without conducting proper due diligence.
According to Santiment, the asset sits at the top in terms of social volume, meaning people find the topic quite intriguing at the moment.
“In each case, when there is mainstream talk at this level, FOMO will create price tops. If holding any, take a cautious approach,” the behavior analytics entity warned.
Will the Show Go On?
Numerous experts believe SOL is poised for a further spike in the near future and is currently in the foothills of an astronomical surge.
The X (Twitter) user Crypto King and Jacob Canfield laid out the most bullish predictions. The former thinks the asset could spike to $300, whereas the latter envisioned an outrageous target of $1,000.
SOL Price Surge: Solana’s token SOL has seen a remarkable increase, rising 7% in 24 hours, 50% in two weeks, and 160% in a month, currently priced around $59.
Growth Factors: The uptrend could be driven by the overall bullish crypto market, significant institutional investment, and the FOMO effect influencing investor behavior.
Coinbase’s Role: Coinbase’s listing of SOL perpetual futures has boosted its accessibility and appeal, especially to institutional investors.
SOL Keeps Flashing Green
Solana’s native token – SOL – seems to be defying the ongoing consolidation of the cryptocurrency market, charting a 7% price increase for the past 24 hours. The asset has surged over 50% in the last two weeks and a whopping 160% on a monthly basis, currently standing at around $59 (per CoinGecko’s data).
SOL Price, Source: CoinGecko
The overall bullish condition of the market in the past several weeks might be one factor driving SOL’s valuation up. Recall that the leading cryptocurrencies by market cap – Bitcoin (BTC) and Ethereum (ETH) – have also spiked to yearly peaks lately.
Another reason could be the substantial interest coming from institutional investors. According to a recent research conducted by CoinShares, Solana witnessed inflows worth approximately $12 million in the last 14 days.
The FOMO (Fear of Missing Out) effect should also be mentioned. This is a psychological phenomenon where people make irrational decisions based on the assumption that they might miss potential gains and get involved with a highly popular coin across the community.
FOMO often leads to impulsive buying and selling without making proper due diligence, meaning that some people might have entered Solana’s ecosystem only because they have seen its impressive price increase as of late.
Coinbase and Solana
Last but not least, Solana’s uptrend could be attributed to Coinbase’s decision to list perpetual futures on its international exchange and Coinbase Advanced.
The option gives customers more leverage to bet on the asset’s price movements. It also makes Solana more accessible to institutional investors globally, who often use Coinbase as a marketplace to trade digital currencies.
