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Solana, the world’s 12th largest cryptocurrency boasting a $9.2 billion in market capitalization, has continued to turn heads with its exemplary performance since late December. Although the launch of Bonk (BONK) seemingly ignited the rally, SOL has sustained it for nearly six weeks. Solana’s price now trades at $25.00 after a 6.3% increase in 24 hours.
What’s Driving Solana Price Rally?
The cryptocurrency industry seems to have gotten over the woes the Solana ecosystem was facing in 2023. One of the worrying trends that occurred numerous times during the 12 months was the frequent network outages. The Solana ecosystem then fell victim to the implosion of FTX exchange, which resulted in a massive selloff, where SOL tested support at $8.05.
Some people quickly branded Solana a failed project but developers within the ecosystem continued to build amidst this criticism. The network suffered serious liquidity problems when FTX and Alameda Research filed for bankruptcy proceedings under Chapter 11 of the United States laws.
On the bright side, the frequent network outages are now a thing of the past, and the Solana ecosystem is squarely grounded. Toward the end of last year, Vitalik Buterin, the co-founder of Ethereum, reckoned that Solana has a vibrant development community. Buterin added that the Solana ecosystem was ready to take off, now that money-hungry individuals were out of the way.
In the meantime, Solana’s price currently holds within the confines of a falling trend channel while bulls plot another major breakout. SOL has, since May, tried but failed to blast above this channel, although declines below the channel kept the token in a downtrend for at least six months.
If support at the lower boundary of the trend channel holds, bulls will be presented with another chance to be on the offensive – for an escape aiming for $40.00 and $60.00 in the coming weeks.
Before that, Solana’s price must fight the possibility of a sell signal from the Moving Average Convergence Divergence (MACD) indicator from handing over the reins to the bears. Traders should consider the position of the momentum indicator before going all in on SOL.
Initial buy orders could be placed slightly above the middle resistance in the trend channel. However, some investors may want to wait until Solana price blasts above the channel’s upper resistance level in confluence with the 200-day Exponential Moving Average (EMA) in purple at $29.67.
The seller congestion at $30.00 is a crucial level in the recovery path, with a clear break and hold beyond it likely to validate a medium-term uptrend in Solana price, where reaching $40 and $60 would be a conservative projection.
Bullish investors can hold on to their positions knowing the odds currently favor a northbound breakout. Notice the 50-day EMA (in red) closing the gap to the 100-day EMA (in blue) and signaling an incoming golden cross pattern.
A golden cross pattern has, over the years, been used by traders to confirm profitable long positions in asset pairs. It occurs when a short-term moving average moves above a long-term one. With such a pattern appearing on the SOL/USD daily chart, a bullish spike would be a matter of when and not if.
Evaluating Short-term Profitability in Solana Price
Some analysts may argue that Solana’s price is closing on a potential 18% short-term breakout that will see the token settle marginally above $30.00. This optimistic outlook for SOL follows the formation of a rectangle pattern as consolidation took precedence between $22.00 and $26.00.
Since Solana price is sitting above all the applied major moving averages, starting with the 200-day EMA (in purple), the 100-day EMA (in blue), and the 50-day EMA (in red), a breakout to the upside is the most likely sequel.
In that case, investors may consider buying Solana slightly above $26, after it cracks through the rectangle resistance. From here, SOL may resolve an approximately 18% move to $30.62. According to the daily chart analysis, movement above $30.00 would validate a medium-term bullish outlook in Solana price for gains targeting $40.00 and $60.00, respectively.
The MACD is signaling a strong buy signal on the four-hour chart, indicating that SOL’s performance may see an upward trend in the near future. If this momentum continues until the end of trading on Thursday, investors can expect the price to potentially rise above $30 from Friday and through the weekend.
The Solana Community Celebrates Latest Developments
The Kin Foundation recently announced an on-ramp solution called Kinetic, dedicated to app developers in the Solana ecosystem. According to an article that first appeared on The Block, this on-ramp feature will allow developers to easily add crypto payments and other use cases on their platforms.
Kinetic refers to an open-source middleware technology designed for Solana-based in-app integration. It contains API and SDKs developers use when deploying crypto integrations on their platforms. The system has been built to simplify the process; therefore, it does not need excessive coding. The Kin Foundation says the software package will benefit both crypto-native and mainstream developers.
The Solana Foundation, while addressing the community, recently said it believes “2023 will be a year where the Solana community really takes the reins and continues to build the framework for a decentralized and permissionless economy.” A vision for the Solana community in 2023 was also released – details in the tweet below.
Buy Solana Now
Solana Alternatives to Buy Today
Before buying Solana, investors may want to consider some of the best crypto presales in the market.
We’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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