Solana is enjoying a positive start to 2023 after spending most of 2022 in decline due to the crypto winter. Also, SOL’s exposure to FTX caused its price to decline rapidly following the FTX saga in November 2022.
SOL has also been a beneficiary of the crypto market upturn as it continues its climb back to the top. Although it is still off its all-time high (ATH) value, it has shown positive signs in 2023.
What Is Driving The Solana Price Increase?
Solana has launched a series of innovative projects that have increased interest among the crypto community. SolanaMobile announced on Twitter its plans to unveil the Solana Mobile stack and Saga phones. This mobile device intends to provide users with easy access to the blockchain. They assured their users of its availability for early 2023.
Also, Solana offers its users a seamless payment protocol launched in February 2022. Brands such as @FastAF and @ASICSamerica, use this innovation. The payment channel allows merchants to interact on a secure blockchain and process payments efficiently.
Moreover, the Solana network has become a developer’s hub as 2053 active developers worked on the blockchain in December 2022. These developers take advantage of the network’s unique proof-of-history mechanism to develop innovative apps on the network.
The network prides itself on being carbon neutral since it does not rely on energy-intensive methods like proof-of-work. It means that the project aligns with environmental goals. The SOL network also progressed with Web3 advancement teaming up with Brave. Solana was integrated into the Brave browser, making it easier for more people to participate in the Web3 trend.
These factors, and other macroeconomic factors such as inflation decline, have aided the price improvement noted in SOL. Investors will hope that the rally continues without any setbacks from external factors.
Solana Price Prediction
Solana is currently trading at $23.18 in the crypto market. On the price charts, more green candlesticks are showing increased bullish momentum. SOL trades above its 50-day Simple Moving Average (SMA) and below its 200-day (SMA). This pattern suggests the rally might be short live. However, SOL is close to its 200-day SMA and will likely surpass it in the coming days.
The support levels are $20.53, $21.57, and $22.58. The resistance levels are $24.64, $25.68, and $26.69. Solana is currently testing the $24.63 level, with a slight pullback present in its uptrend. The Relative Strength Index (RSI) is in the overbought zone at 79.29; the RSI might retrace and fall into the neutral zone.
The Moving Average Convergence/Divergence (MACD) is currently above its signal line and showing a bullish signal. Solana will likely continue its rise in the coming days.
Investors should remember that if an altcoin loses half its value (50%), it will have to rally 100% to return to that value. Such a rally might be challenging. Volatility is also an essential factor to consider when investing in altcoins or any cryptocurrency.
Featured image from Pixabay and chart from TradingView.com