Solana is off to a positive start to 2023 after spending most of 2022 in decline due to the crypto winter. Also, Exhibition of SOL at FTX quickly drops its price as a result the FTX saga in November 2022.
What is driving the Solana price increase?
Solana has launched a series of innovative projects that have increased the interest of the crypto community. Solana-Mobile announced on Twitter its plans to unveil the Solana Mobile stack and Saga phones. This mobile device aims to provide users with easy access to the blockchain. They assured their users of its availability for early 2023.
In addition, Solana offers its users a transparent payment protocol launched in February 2022. Brands such as @FastAF and @ASICSAmerica, use this innovation. The payment channel allows merchants to interact on a secure blockchain and process payments efficiently.
Furthermore, the Solana network has become a developer hub while 2053 active developers were working on the blockchain as of December 2022. These developers take advantage of the network’s unique history proof mechanism to develop innovative applications on the network.
The network prides itself on being carbon neutral because it does not rely on energy-intensive methods like proof-of-work. This means that the project aligns with environmental objectives. The SOL network has also moved forward with the Web3 advancement by partnering with Brave. Solana has been integrated into the Brave browser, making it easier for more people to participate in the Web3 trend.
These and other factors macroeconomic factors such as lower inflation, have contributed to the price improvement seen in the SOL. Investors hope the rally will continue without any setbacks from external factors.
Solana Price Prediction
Solana is currently trading at $23.18 in the crypto market. On the price charts, more green candlesticks show increased bullish momentum. SOL is trading above its 50-day mark Simple moving average (SMA) and below its 200 days (SMA). This trend suggests that the rally may be short-lived. However, SOL is close to its 200-day SMA and will likely surpass it in the coming days.
The support levels 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 (IRS) is in the overbought zone at 79.29; the RSI could retrace and fall into the neutral zone.
The moving average convergence/divergence (MACD) is currently above its signal line and is showing a bullish signal. Solana will likely continue her ascent in the coming days.
Investors should remember that if an altcoin loses half of its value (50%), it will need to rally 100% to return to that value. Such a rally could be difficult. Volatility is also an essential factor to consider when investing in altcoins or any other cryptocurrency.
Featured image from Pixabay and graphic from TradingView.com