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- 1 Solana crypto has returned more than 60% of wealth to its investors in the last month.
- 2 The Bitcoin Spot News by MatrixPort seems to have caused the drop in SOL price.
Solana’s (SOL) token faced a significant drop in value from over $200 in 2021 to under $10 in 2022. It has recovered in recent months and is now worth over $100. Despite criticism for its previous network outages and close relationship with Sam Bankman-Fried, traders see SOL’s recent price gains as a sign of increased confidence in the ecosystem.
What Caused the SOL Price Surge?
Some analysts attribute SOL’s surge to the airdrop frenzy that took place on the network after the newly launched JITO token was listed on major centralized exchanges at the start of 2023 December.
Within the first few hours of trading, JITO achieved a market capitalization of over $300 million. This success was followed by the BONK meme coin on Dec. 14, 2023, which caused Solana’s Saga phone to sell out, as some airdrops targeted mobile phone owners. One of the analysts from Thecoinrepublic covered this in one of the Solana Articles.
Despite competing blockchains experiencing outages due to increased activity in December 2023, such as Arbitrum, zkSync, and BNB Chain, the bullish momentum was supported by a significant surge in volume within Solana’s decentralized applications (DApps) ecosystem.
After the initial rush for Solana SPL tokens subsided, resulting in losses of 40%, 41%, and 44% for Jito (JTO), DogWifHat (WIF), and BONK, respectively, investors are questioning whether there is any other support for SOL’s $42 billion valuation, which makes it the fourth-largest cryptocurrency, excluding stablecoins.
Technical Analysis & Prediction of SOL Coin Price
Currently, Solana dropped 22% in 11 days after reaching $126 on the day of December. The reason is pretty clear, the SEC is expected to disapprove the Bitcoin Spot ETF and this news has spread like fire in the crypto world as all the coins are going down.
However, some experts remain bullish as its current price of $92 represents a close to 0.6 times increase from the previous month. The current support level of SOL is at $79.8 while the current resistance is at $125.
However, crypto traders tend to quickly change their portfolios when better opportunities arise. This has led the Solana investors to question whether there is still a chance for a breakout at the current resistance level.
Conclusion
Solana’s price has seen a drop of more than 20% since the start of this year. The analysts predict that the drop is attributed to the Matrixport report about bitcoin spot ETF approval. The current price is near the support level of $79.8
Technical Levels
- Support Levels: $79.8 and $51.8.
- Resistance Levels: $125 and $199.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
