Solana Price Prediction: 3 Catalysts Propelling SOL Towards $100
Solana price prediction: Solana, like many cryptocurrency majors, topped out earlier this week after a persistent rally from mid-October. The crypto market was significantly overbought and needed to cool off before the resumption of the uptrend.
Over the past 24 hours, Solana price gained 8% to trade at $78 on Friday. The smart contracts token is up 9.2% in the last week, 28% in a fortnight, and 32% in a month, not to mention a 460% increase in 12 months.
Key catalysts have contributed to the soaring Solana price, resulting in euphoria among investors. As traders FOMO and DCA into SOL dips, the uptrend is propped to keep going.
Although resistance at $80 may lead to a brief sell-off, due to the format of a short-term double-top pattern, sweeping through liquidity allows already sidelined investors to seek exposure, which eventually drives SOL towards $100.
Solana Price Prediction: 3 Catalysts Driving SOL Rally
Solana slid below the $70 support mark earlier in the week but support at $65 coupled with the Federal Reserve keeping interest rates unchanged and projecting three rate cuts in 2024, triggered a stronger rebound which narrowed the gap to $80.
Risk assets like Bitcoin and Solana benefit the most when fixed-income returns drop.
Coinbase listing Solana SPL tokens amid airdrop rumors is another catalyst keeping SOL not only buoyant but also bullish. The network is experiencing a surge in the demand for SPL tokens, thanks to their integration with two leading exchanges Binance and Coinbase.
Jito (JITO) and Bonk (BONK) are some of the ecosystem’s SLP tokens listed by Coinbase on December 7 and 14, respectively.
The decentralized finance (DeFi) and non-fungible token (NFT) markets in the Solana ecosystem have also been growing steadily, with data revealing a 12% increase in transactions in just seven days, which towers above other protocols like Ethereum with a 1% drop and BBN chain with a 4% growth.
The total value locked (TVL) which measures the dollar value of assets locked in Solana smart contracts recently crossed the $1 billion mark from October 1’s 326 million.
This persistent increase in the TVL implies that investors have a long-term outlook for Solana. As TVL rises, selling pressure in the spot market drops due to reduced supply which leads to SOL price rallying to higher levels.
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The technical outlook on the four-hour chart is mainly bullish and accentuated by a buy signal from the Moving Average Convergence Divergence (MACD) indicator.
The resistance at $80 was expected, with Solana likely to retrace for more liquidity before breaking out gain.
Dips in Solana are proving to be very profitable, considering the token is trading at $78, up from $60 on December 1.
Traders looking forward to entering long positions may do so as soon as resistance at $80 is defeated and successfully retested. Although other hurdles are likely to come up like the region between $88 and $90, with the support Solana is getting from the community and the crypto industry, the blastoff past $100 is highly likely.
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