Solana price prediction: Solana (SOL) is moving in unison with the majority of cryptocurrencies in the market led by Bitcoin price climb. The competitive smart contracts token, giving other altcoins a run for their money, is up by a double-digit percentage to $113.
Its 24-hour trading volume increased by a staggering 94% to $3.3 billion boosting the market cap 11% higher to $50 billion, based on live market data by CoinMarketCap. Solana is currently the fourth-largest crypto, behind the most prominent stablecoin Tether (USDT).
Solana Price Prediction: Can SOL Close The Day Above $115
Solana price retreated following the token’s 2023 high at $125, with the series of lower lows and lower highs, forming a short-term falling wedge pattern. This downtrend continued slightly below $100 but bulls reclaimed control at $98 which paved the way for the ongoing trend reversal.
The recovery in SOL price coincided with Bitcoin’s strengthening technical structure, having secure support at $42,000 toward the end of December. Solana reclaimed the S/R areas highlighted by the 50 Exponential Moving Average (EMA) (in red) and the 20 EMA (in blue).
Due to the improving technical outlook, which called on holders to refrain from further selling, while traders entered new long positions, SOL climbed above $110 and now it is struggling to reduce the distance between $115 and $120.
A buy signal from the Moving Average Convergence Divergence (MACD) indicator backs the uptrend in SOL, following a breakout from the falling wedge.
Holding support at $115 could increase the chances of Solana price overcoming the selling pressure at $120 and continuing the recovery journey towards $200.
Traders who entered long positions above the upper trendline have seen profits materialize. However, they should be alert and cautious to avoid bull traps, especially if SOL fails to close the day above $115.
With the Relative Strength Index (RSI) retreating into the neutral area after brushing shoulders with the overbought region, the path with the least resistance could switch downwards.
In case of a reversal with the RSI falling back to the midline (50) and possibly towards the oversold region (below 30), SOL might retest the short-term support at $110 with the likelihood of losses extending to the previous support around $100.
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Solana DeFi TVL Starts To $1.5 Billion
Assets locked in Solana smart contracts, also referred to as decentralized finance (DeFi) total value locked (TVL) have continued to increase alongside the spike in price, hitting highs above $1.5 billion for the first time since August 2022.
Blockchain data by Defi Llama, a platform that monitors the perforce of ecosystems in the DeFi sector reveals the upsurge started in October and is unlikely to slow down as long as the crypto market is bullish. This means holders are relishing in the positive outlook SOL is exhibiting and are willing to keep their SOL tokens locked while they earn staking rewards.
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