The advertised “Ethereum killer” Solana has been at rock bottom ever since Association with the collapsed exchange FTX. However, it seems like 2023 has new plans for the struggling ecosystem, with the native token SOL up 13% based on CoinGecko Numbers, Tuesday.
This huge price surge caused SOL to reclaim in double digits after falling as low as $7.96 on December 29th.
A breath of fresh air for Solana
Lost after the ecosystem most From its value over the past year, this price pump is a breath of fresh air for investors and owners of SOL. While the bears have left their mark on investor sentiment at SOL, some are still bullish on a possible reversal.
However, this is not surprising. Solana has taken time to distance herself from being known as one of the “Sam Coins”with Messari let go a detailed overview of the ecosystem on December 15th.
However, Solana’s token isn’t the only one that’s been hit hard. Of the NFTSolana market suffered from this whole debacle when DeGods and y00ts, two of the most famous collections in the chain, decided to do it Hike to the polygon.
Solana NFTs sure don’t look dead pic.twitter.com/UXNqJ6wRyi
— Mamba 🐍 (@Mamba248x) December 31, 2022
However, that hasn’t stopped Solana from continuing to keep it above 2 Place in terms of NFT sales volume. Transactions also support a bullish future for its native token as it still retains its top 1 Spot in the transaction volume acc Delphi Digitalan institutional research platform.
With Solana also leading in active addresses against rivals, we can definitely see why the SOL has just shot up.
Macro and FUD, not a great mix
While the current bull market is good news, investors and traders should not discount the power of macroeconomics in the crypto markets. Because SOL still strong with Bitcoin correlated, we can see that the price action of SOL is somewhat closely related to the price action of BTC.
SOL Total Market Cap at $4.3B on the Daily Chart | Chart: TradingView.com
This is of particular concern as BTC is highly correlated with the traditional financial market and in many cases even the S&P 500 and the Dow Jones index follows.
Not to mention that the US Federal Reserve does to plan increase its interest rate if the inflation not slowed down in the coming months. This will slow SOL’s recovery in the coming months if the situation doesn’t improve.
Currently, SOL investors are targeting the $11.83 price resistance, which if broken will provide a starting point for more gains in the future.
Source: Crypto News Deutsch