Solana (SOL) bounced back from the slight pullback yesterday, although the general crypto market Cap fell today. SOL, which has been in an uptrend for the past week, is up 28.44% during that time. This increase could be due to a combination of economic factors and Solana’s growing utility among crypto users.
What drives Solana’s price?
The Solana Network is enjoying more attention due to increased crypto awareness and adoption by individuals and institutions investors. The network has rolled out plans for 2023, causing excitement in its online community.
The SOL network provides developers with access and a framework to build Dapps on his Blockchain. For example, phantoma cryptoWallet, is hosted on the Solana blockchain. The wallet supports decentralized finance, staking and NFT-Transactions for Solana users.
Likewise, SolanaMobileon Twitter, announced its intention to launch Mobile stack by Solana and Saga phones. The mobile phone puts the Solana blockchain at the fingertips of users. Users are excited for the launch of the device, which is scheduled for early this year.
Additionally, as an altcoin, Solana is correlated in the price action Bitcoin. So, Bitcoin is new rally and other economic factors could affect the price of SOL.
Macroeconomic factors affecting the SOL price include a low consumer price index (CPI) Value for December 2022. The CPI notes the overall change in consumer prices over a given period. These factors combined could be responsible for SOL’s price surge over the past few weeks.
SOL is currently priced at $21.42 on the daily chart. | Source: TradingView.com SOLUSD price chart
Solana Price Prediction: Will be SOL Resistance break?
SOL is recovering from yesterday’s slight pullback and is 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 is trading below its 50-day price Simple Moving Average (SMA) and 200-day SMA on the weekly charts. These signs are suggesting a bearish trend or a slight reversal in SOL price.
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the Relative Strength Index (RSI) is near the oversold zone at 43.04 and could fall further if the bears maintain their charge.
the Moving Average Convergence/Divergence (MACD) below its signal line and turning negative, suggesting a bearish reversal despite the rally.
SOL price might continue lower and touch the $19.69 support. The next rally is likely to surpass the initial resistance level of $21.90 in the coming days.
At press time, SOL was priced at $21.42. Trading volume is down over 50% in the last 24 hours to $638.8 million.
Featured image from Pixabay and chart from TradingView.com
Source: Crypto News Deutsch