Solana is enjoying a positive start to 2023 after spending most of 2022 on the decline due to the crypto winter. Too, caused its price to drop rapidly afterwards
SOL has also been a beneficiary of the crypto as he continues his climb back to the top. Although it is still off its all-time high () value, has shown positive signs in 2023.
What is driving Solana’s price increase?
Solana has launched a number of innovative projects that have increased interest among the crypto community. announced the Twitter its plans to introduce the Solana Mobile stack and Saga phones. This mobile device claims to provide users with easy access to the blockchain. They assured their users of their availability by the beginning of 2023.
In addition, Solana offers its users a fluid payment protocol launched in February 2022. Brands such as Y , use this innovation. The payment channel allows merchants to interact on a secure blockchain and process payments efficiently.
In addition, the Solana network has become a as 2,053 active developers worked on the blockchain as of December 2022. These developers take advantage of the network’s unique proof-of-history mechanism to develop innovative applications on the network.
The network prides itself on being since it is not based on energy intensive methods such as proof of work. It means that the project is aligned with the environmental objectives. The SOL network also progressed with the advancement of Web3 by partnering with . Solana was integrated into the Brave browser, making it easier for more people to participate in the Web3 trend.
These factors and others such as the decrease in inflation, have contributed to the improvement in prices observed in SOL. Investors will expect the rally to continue unhindered by external factors.
Solana Price Prediction
Solana is currently trading at $23.18 on the cryptocurrency market. On price charts, more green candles show more bullish momentum. SOL trades above its 50 days (SMA) and below its 200 days (SMA). This pattern suggests that the rally could be short-lived. However, SOL is close to its 200-day SMA and will probably break above it in the coming days.
He support levels they are $20.53, $21.57, and $22.58. The resistance levels are $24.64, $25.68, and $26.69. Solana is currently testing the $24.63 level, with a slight pullback present in its uptrend. The relative strength index (RSI) is in the overbought zone at 79.29; the RSI could pull back and fall into the neutral zone.
The moving average of convergence/divergence (MACD) is currently above its signal line and is showing a bullish signal. Solana is likely to continue her ascent in the coming days.
Investors should remember that if an altcoin loses half of its value (50%), it will need to recover 100% to get back to that value. Such a demonstration could be challenging. Volatility it is also an essential factor to consider when investing in altcoins or any cryptocurrency.
Featured image from Pixabay and graphic from TradingView.com