Solana struggles as SOL hangs in the middle

Solana’s native token, SOL, is listed on the market at $87.16, up by 8.845 in the last 24 hours. It further reflects a drop of 21.92% in the last 30 days. Meaning, the time of Christmas marked its significant fall. The token has, since then, been experiencing a bit of turmoil. SOL has inched above the milestone of $100 and has also touched the base at $80.31.

A resistance level has been roughly drawn at $111, understanding that it was posed to sustain itself after the first date of this year. The highest SOL has danced around is $116.1 on January 1, 2024.

Now there is selling pressure amid the crash of the crypto market. BTC and ETH are leading the charge, with SOL in the middle of the storm. It did gain momentum but eventually lost it when the market entered a price correction. There is no concrete timeline for when it will end. Speculation states that Bitcoin Halving could bring the market back to life. The digital currency market is expected to retain volatility, urging enthusiasts, traders, and investors to hold on to their portfolios for the longer term.

Within the Solana ecosystem, not everything is obscure. For starters, the NFT sector has actually brightened up, with sales volume increasing by as much as 40% in the past week. Additionally, both the number of customers and sellers has increased by 62% and 71%, respectively.

Bears and bulls are standing true to their grounds. Bears suggest that if SOL goes below $70.8, then it is only a matter of days before the token hits the support level of $61.1. A mix of bullish sentiments in the same tone reveals that going above $95.2 will pave the way for SOL to test the resistance level of $103 as per the Solana crypto prediction.

While that is less than the peak SOL had attained at the beginning of the year, it is still a start for many to understand that opportunities are not precisely over.

Brett Sifling from Gerber Kawasaki Wealth & Investment Management has said that they don’t see any major factors driving the price of SOL. The investment advisor added that the current situation is more of a reaction to the correction that the approval of the Bitcoin ETF has triggered.

The SEC approved the Bitcoin ETF on January 10, 2024. There was an uptick for a while, but then the market went down the window, almost free-falling without any restrictions whatsoever.

Solana Protocol, Drift, plans to develop a points program wherein users will be rewarded for their activities. The team has said that they have already taken snapshots of the users, adding that almost a hundred million Drift points will be rolled out every month. Cindy Leow, the co-founder of Drift Protocol, has confirmed the development. Moreover, the protocol has plans to introduce its native token.

Whether SOL is worth buying depends on one’s risk assessment, understanding of the market, and exploration of the cryptosphere. Taking the step with the utmost understanding of every possible aspect is recommended.

Updates like the one pertaining to the Drift Protocol spark optimism. Plus, many crypto influencers and analysts have already hinted that the market is merely going through a price correction before it makes a strong bullish run. The prior market slump can be attributed to the anticipation of Bitcoin ETF acceptance. What is happening presently has been identified as a more organic and natural path of action.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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