Solana Bounces Back From Lows; Can SOL Sustain It?
Solana stands at the $53 level, with volatility projected to continue for some time. Solana maintains its 8th position on market capitalization even today, while ETH and ADA remain ahead of this new-age crypto chain. SOL is down by 70% over the last year, but it could soon become the eye candy for crypto investors with discounted trading value.
The fear induced by Terra’s suspension from the market exchanges and its sudden crash to almost 100% has triggered potential crypto enthusiasts. Everyone seems to be in a defensive state, with no one intending to go beyond a logical holding amount.
While there is a very low probability for similar steps to get repeated with SOL, this blockchain works on smart contracts, has a shorter transaction processing time, and emphasizes maintaining fees and taxes while supporting scalability and usability. These aspects highlight a real-life use case for SOL crypto and its blockchain, which wasn’t seen with LUNA.
SOL can be expected to trade above $100 by the 2022 end, offering a close to 100% gain for buyers. Since the significant gains of 2021 have also subsided, buyers will find more logic in buying used base coins rather than fiat hype or meme coins.
Solana gets a decent pullback from the lows of under $40 levels. This SOL price level requires some consolidation to affirm the buying sentiment. Sudden upside movement could result in cascading profit booking activity. Read the SOL forecast to know whether the prices will move up or down.
Solana’s recent trip to pre-2021 breakout levels sets a wrong predicament. $55 emerged as a resistance level during May 2021, and Solana’s price surge took the value over three months to re-attempt a breakout above $55.
Since Solana was relatively new to investors during its first and second breakout attempt, we witnessed SOL surging to $260. This gain within a couple of months displayed SOL’s developments and technical superiority compared to its rivals. Since hitting an all-time high level, SOL has now even retested a fresh year low level of $36 in May 2022.
Since buying and selling are happening simultaneously, Solana has a strong buying level at $45 that replicated the pre-2021 breakout level. At the same time, the resistance zone has shifted to $67 on an immediate scale.
Solana’s marginal gain on May 15 seems to be countered by the current negative movement. The longer this tussle remains above $45 and moves into a consolidative pattern, we can expect SOL to recover in the coming days.
Investors should look for opportunities to acquire SOL at different price bands without going all out since prolonged volatility is possible.