Solana Price Prediction: Can $SOL Maintain Momentum Beyond $100 Mark?

Solana Price Prediction: Defying the current market uncertainty, the competitive smart contract token Solana(SOL) has been rising for the past six days, registering 66% weekly growth. Amid this rally, the coin price has reclaimed the crucial psychological level of $100 and rose to the fourth biggest cryptocurrency by market capitalization, overtaking XRP and Binance Coin (BNB). While the technical and fundamental aspect of the Solana coin looks bullish, the buyers may prolong this rally to higher levels.

Also Read: Paxos Gets NY Financial Regulator Nod for Solana Launch

$100 Breakout Sets SOL Price for Higher Rally

• The SOL price rally flips the $100 barrier into a potential support
• The constant recovery may witness a minor pullback to recuperate the bullish momentum
• The 24-hour trading volume on the Solana coin is $6.7 Billion, indicating a 121% gain.

Over the last four months, the Solana price has exhibited a dramatic recovery in the daily timeframe, marked by a parabolic ascent from $17.7 to a current trading level of around $113 — a striking 540% increase. However, this rally is a synergy of multiple, intrinsic factors within the Solana ecosystem.

Key among these driving forces is the robust development in Solana’s decentralized finance (DeFi) sector. A significant increase in the Total Value Locked (TVL) within its DeFi landscape underscores heightened activity and trust in the network. Furthermore, the network has seen a spike in whale transactions – large-scale trades that often indicate growing investor confidence in the long-term potential of the coin.

Additionally, the expanding base of SOL coin holders points to broader adoption and faith in its value proposition

Moreover, the rising popularity of Solana-centric products, such as the Saga smartphone and its meme coin—BONK, has further propelled Solana into the limelight, enhancing its visibility and appeal in the crypto market. 

In the face of this strong bullish trend, the SOL price has reclaimed a crucial psychological threshold at $100, marking a significant milestone that could further bolster market sentiment. Nevertheless, following such a swift ascent, SOL might experience minor pullbacks, potentially retreating to the $100-$95 support zone. This would be a natural consolidation phase, setting the stage for further upward movement, with potential targets at $120 and $144.

Is Solana Coin Ready For A Bull Run?

The recovery has also led Solana to surpass the 38.2% Fibonacci retracement level, tracing back from its November 2021 high to December 2022 low. For a more concrete affirmation of this bullish trend, investors are eyeing the 50% retracement mark, around $134. Surpassing this threshold could signal a weakening in bearish momentum and diminish the likelihood of a trend reversal

• Average Directional Index (ADX): Currently at 44%, the ADX suggests that buyer exhaustion could be nearing, potentially leading to minor retracements.
• Exponential Moving Average (EMA): The 20-day EMA serves as a dynamic support. A breakdown below this line could be an early indicator of forthcoming corrections.