Solana (SOL) Hits a Double Century Within a Month! What’s Next?
Solana has managed to move out of the flash crash witnessed on a majority of cryptocurrency the last day. Despite the flash crash, Solana managed to get away without facing the heat of the price crash. A sudden fall in the value of any asset within a few minutes is considered a flash crash, which generally happens because of a systematic glitch.
SOL has jumped multiple positions to occupy the 6th position in terms of market capitalization that has reached close to $60 billion. Just in the last week, Solana has moved up by close to 30%. The short processing time taken by Solana is one of the positive elements of this cryptocurrency that will promote its acceptance by users compared to other cryptocurrencies.
Its intention of being an affordable blockchain network for small and large-scale enterprise users has highlighted its aspirations of capturing a wider market space. This aspiration is complemented by their proof of history validation algorithm that ensures low transaction costs while offering scalability and faster processing.
Solana Price Analysis
Solana cryptocurrency has marked a tremendous positive movement in the last three days jumping from $156 to above $200. Trending above $200 on a closing basis could bring in fresh buying action.
Solana has been extremely volatile after its strong uptrend in August 2021. The resulting volatility has ensured the price fall from above $210 to almost $100, which indicated a profit booking sentiment. Solana has taken support from $117 and managed to close above the two important psychological levels of $150 and $200 within a short interval of a week.
Earlier, too, Solana faced rejection from the $175 level and has taken support from its emerging trendline that can be seen moving up from September 21, 2021, till date. Since $175 was acting as a rejection level, there was a high probability of continued resistance. Instead, a sudden buying action was witnessed, that took SOL’s value to extreme highs. Breaching the resistance positively impacted its price movement, and so far, we have seen three consecutive above 5% movements.
Since $200 projects as a potent psychological level, one can expect consolidation above the $200 level to initiate a fresh buying momentum. The positivity is not just derived from the strong up move, but the subsequent rising transaction volume and RSI levels. Trading close to 70 indicates an overbought level, and there might be some consolidation before the price trend to resume.
Based on our Solana price prediction, For any profit booking or sell-off, we can expect the value of Solana to take support from $175 followed by $150. 200 DMA of this cryptocurrency is still having a massive gap from current levels, indicating strong upside movement in the last six months.