The price of Solana has supported support above $20.00 against all odds and against the background of the implosion of FTX, which threatens the survival of the ecosystem. The first meme coin in Solana, BONK Inu (BONK) is related to the SOL rally that started at the end of December. Solana prices add to their rally into the New Year as the meme coin hype explodes.
In just three weeks, the value of SOL has increased by more than 150% to trade at $24.56. The smart contract token marked a new 2023 high of $26.53 but has since retraced, possibly as investors took profits.
Solana Price Determining Long-Term Bullish Potential In 2023
The Solana price should secure higher support, preferably at $24.00 to give the bulls time to build momentum for the next move to the upside. A tentative support level may be provided by the uptrend line that is quickly tested at the meeting with the 50-day Exponential Moving Average (EMA) (in red) around $23.22.
If selling becomes aggressive, the price of Solana will look down to the main uptrend line and the next bullish zone at $20.00. Traders looking for a long position at the SOL price should tread carefully, bearing in mind that the Moving Average Convergence Divergence (MACD) indicator currently has a sell signal.
If investors listen to the call to lock in profits, the price of Solana will be $ 20.00 before rebounding for a new attack on the seller’s congestion at $ 26.00 and $ 30.00. The continued pullback may not last long as the Money Flow Index (MFI) indicator is back above the midline (50.00) and could close the overbought area, thus opening the way for more gains in the short term.
Solana’s price uptrend gives an intact impression on the daily time frame chart but faces resistance at $26.00. Also capping the upward move is the descending trend line and the 200-day EMA (in purple) at $30.00.
The Moving Average Convergence Divergence (MACD) indicator supports buy signals that can call more buyers into the SOL market. As investors take positions in the market, momentum will build not only for a breakout above $30.00 but towards $100.
On the downside, the daily chart reinforces support at $20.00 with the 100-day EMA (blue). A rebound from this level could be a boost to the price of Solana needed to ignite another rally.
Can Solana Prices Reach Highs In 2023?
Solana’s price tends to rally even when the cryptocurrency market isn’t there. Despite the crash of 2022 – made worse by the collapse of Sam Bankman-Fried’s FTX exchange, Solana still has a vibrant community and an ecosystem of apps and smart contract tokens that thrive on its capacity.
In late December, Vitalik Buterin recognized the Solana ecosystem and the developers within it. In a message of support, the well-known developer said that now Solana can move forward – now that “the bad opportunistic money is gone.” Buterin refers to people from organizations like FTX who have long controlled liquidity in the entire network.
“Some smart people tell me that there is a smart developer community in Solana, and now that the bad opportunistic money is out of the way, the chain has a bright future.”
“It’s hard to tell from the outside, but I hope the community gets a fair chance to grow.”
The Solana ecosystem is always vibrant and eager to succeed in becoming a real “Ethereum Killer”. Frequent network blocking has been resolved after several upgrades in Q3 2023. It’s been almost four months since Solana was offline.
According to a leading crypto analyst at TradingView named ‘Richbust9,’ for Solana’s price to start trending to an all-time high, it must successfully overcome three major barriers, including resistance at $40, $80, and $100.
“There are 3 big hurdles Solana has to overcome. 40$ zone 80$ zone and finally 100$ area. To get that high then the bulls have to go sideways up and short dip retrace. It won’t be easy because the Feds are still increasing rates and inflation is still high.
Let’s face it, the bull market has yet to be confirmed and will largely depend on the United States Federal Reserve’s decision on interest rates in the coming months. The first review in 22013 is expected to be around the middle of next week. In addition, there is a possibility of an increase in interest rates to keep inflation at bay. Therefore, investors should manage their expectations ahead.
If you’re looking for other high-potential crypto projects along with SOL, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by CryptoNews Industry Discussion Team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not part of Cryptonews.com’s editorial content.