Crypto
Solana Price is Changing Hands at $40: Here’s What Could Happen
Solana price has not displayed any upside over the past two days, despite the rotation in market capital from the flagship cryptocurrency Bitcoin to the altcoins. The altcoin has dipped by nearly 4% over the last day, changing hands at the important $40 level. At press time, the SOL price was trading at $39.90 with sideways movement over the past 24 hours. Even so, the digital asset has recorded a 23% gain over the past week and a 72% increase in the month to date, while other tokens hardly saw double-digit gains.
Where to Next?
Solana has been one of the most bullish cryptocurrencies this year, surging a staggering 304% in the year to date. The cryptocurrency has been at the forefront of the impeccable rally among altcoins in the decentralized finance (DeFi). Investors and analysts are wondering if SOL can mimic the previous bullish rally to its all-time high of $260.
However, Solana’s lack of bullish strength in the past 48 hours has investors wondering if the asset’s bull run is over. SOL’s total market cap has declined by more than 4% over the last day to $16.7 billion, ranking it 7th after USDC, while the total volume of the SOL token traded over the same period slumped by 20%.
The Solana price has been in the limelight this year, skyrocketing from its yearly lows into a new high on the back of a spike in market volatility. The asset’s recent bullish price action is impressive when considering higher timeframes. A year ago, the crypto market experienced one of the biggest crypto winters in history caused by the collapse of Sam Bankman-Fried’s FTX exchange. The Solana price plunged massively to $8 due to its relationship with FTX and Alameda.
Even so, Solana has shown resilience over the past year, more than doubling its value since last month. On Wednesday, the altcoin broke above the important resistance level of $40, hitting an intraday high of $46.65 before pulling back. Now that the token is approaching the resistance level at $50, market participants are anticipating further gains.
Solana Price Analysis
Solana price has been hovering around $40 over the past few days, its highest level since August 2022. During this period, the digital currency has been struggling to maintain its position above this level, suggesting an exhaustion from its recent rally. Solana remains above the 50-day and 200-day exponential moving averages, as well as the 100-day and 200-day exponential moving averages. Its RSI is in the overbought zone at 71, indicating an increase in demand and buying pressure.
Despite the minor pullback, the bulls seem to still be in control of the SOL price. As such, bulls need to gather momentum to push the Solana price to $50 and $60. On the other hand, a drop below $40 might push the price lower, invalidating the bullish thesis.
SOL Price Chart