Solana (SOL) recovered from yesterday’s slight decline, even though the general cryptomarket the limit fell today. SOL, which has been in an uptrend for the past week, saw an increase of 28.44% during this time. This increase could be due to combined economic factors and Solana’s growing utility among cryptocurrency users.
What is driving the price of Solana?
The Solana network is receiving more attention due to the increased awareness and adoption of cryptocurrencies among individuals and institutions. investors. The network has released plans for 2023, creating excitement among its online community.
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the SUN network provides access to developers and a framework to build dapps in your blockchain. For example, Ghost, a crypto wallet, is hosted on the Solana blockchain. The wallet supports decentralized finance, staking, and NFT transactions for Solana users.
Too, SolanaMobileon Twitter, announced his intention to launch Solana Mobile Battery and Saga phones. The mobile phone will put the Solana blockchain within the reach of users. Users are excited about the launch of the device, scheduled for early this year.
Also, as an altcoin, Solana correlates with bitcoin in price action. So, recent bitcoin meeting and other economic factors could be influencing the price of SOL.
Macroeconomic factors affecting the price of the SOL include a low Consumer Price Index (CPI) value for December 2022. The CPI looks at the overall change in consumer prices over a specific period of time. These combined factors could be responsible for the increase in SOL prices in recent weeks.
Solana Price Prediction: Will SOL Break Its Resistance?
SOL is recovering from yesterday’s slight pullback, trading at $21.28. The support levels are $19.60, $20.09, and $20.75, while the resistance levels are $21.90, $22.40, and $23.05. SOL trades below its 50 days Simple Moving Average (SMA) and 200-day SMA on the weekly charts. These signs point to a downtrend or slight reversal in the SOL price ahead.
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He Relative Strength Index (RSI) it is close to the oversold region at 43.04 and could continue lower if the bears hold their charge.
He Moving Average Convergence/Divergence (MACD) it is below its signal line and is emitting negative values, indicating a bearish reversal despite the rally.
The price of SOL could fall further and touch the support at $19.69. The next rally is likely to break above the first resistance level of $21.90 in the coming days.
At press time, the price of SOL was trading at $21.42. Its trading volume is down more than 50% in the last 24 hours to sit at $638.8 million.
Featured image from Pixabay and graphic from TradingView.com
