Solana (SOL) recovered from yesterday’s slight setback, even when the general crypto market ceiling dropped today. SOL, which trended higher last week, recorded a 28.44% increase during this time. This increase could be due to combined economic factors and the growing utility of Solana among crypto users.
What determines the price of Solana?
The Solana Network is enjoying more attention due to increased awareness and adoption of crypto among individuals and institutions investors. The network has rolled out plans for 2023, sparking excitement among its online community.
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The SOL network provides developers with access and a framework to create DApps on its blockchain. For example, Ghost, a crypto wallet, is hosted on the Solana blockchain. The wallet supports decentralized finance transactions, staking, and NFT transactions for Solana users.
Also, Solana-Mobileon Twitter, announced its intention to launch Solana Mobile Stack and Saga phones. The mobile phone will bring the Solana blockchain to users’ fingertips. Users are enthusiastic about the launch of the device, scheduled for this beginning of the year.
Additionally, as an altcoin, Solana is correlated to bitcoin in price action. So, Bitcoin is recent rally and other economic factors could influence the price of SOL.
Macroeconomic factors affecting the price of SOL 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 the surge in SOL prices over the past few 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 is trading below its 50 days Simple Moving Average (SMA) and 200-day SMA on the weekly charts. These signs indicate a downtrend or slight reversal in the price of SOL ahead.
The Relative Strength Index (RSI) is near the oversold region at 43.04 and may continue lower if the bears maintain their charge.
The Moving Average Convergence/Divergence (MACD) is below its signal line and exudes negative readings, indicating a bearish reversal despite the rally.
The price of SOL might drop further and touch the support at $19.69. The next rally will likely break above the first resistance level of $21.90 in the coming days.
At press time, SOL’s price was trading at $21.42. Its trading volume is down more than 50% in the past 24 hours to $638.8 million.
Featured image from Pixabay and graphic from TradingView.com