The first quarter of 2019 was incredibly successful for the cryptocurrency market, with Bitcoin posting its greatest monthly closing in ten months. Even when the U.S. banking crisis threatened to push cryptocurrencies back into a bear market, the total market value of all cryptocurrencies has remained above the $1 trillion threshold for the majority of 2023. As investors wait for a breakout, Solana pricing has managed to stay above a vital support level.
The collapse of the FTX cryptocurrency exchange and its cryptocurrency hedging firm Alameda Research in 2022 is noteworthy, as SOL almost lost all of its value at that time. The Layer 1 token’s fortunes in 2023 have so far started to change as it currently trades 106% higher than its beginning price of around $20.64 on January 1. It is now performing even better than Bitcoin and has the largest year-to-date (YTD) gain of any major cryptocurrency.
Source: Messari
Since Solana traded at roughly $50 in August, January was really the greatest perming month. SOL increased by as much as 142% in January, riding the wave of optimism that saw prices rise everywhere.
Remember that Solana had a huge oversold condition in December, which may have prompted late buyers to purchase the drop and cause the rebound in January.
Solana’s price is now sitting around $20.64, up 1.53% over the previous day and with a $390 million 24-hour trading volume that has increased 31.89% so far today. Solana is listed as Polygon (MATIC) at number #10 on the CoinMarketCap ranking, with a market cap of $8.01 billion.
SOL, where to now?
A bullish triangle might be used by Solana Bulls to reach $44
On the daily chart for SOL in 2023, an ascending triangle can be seen (see below) as a result of the price movement throughout that year. As investors waited to enter the market at a bargain, Solana was heading lower with its price being restrained by two significant moving averages.
The $21.6 resistance level, welcomed by both the 50-day and 200-day Simple Moving Averages (SMAs), would need to be surmounted by SOL before they could achieve their objective. Beyond that, in order to confirm a bullish breakthrough from the technical structure, the buyers would have to push the cryptocurrency over the resistance line of the triangle at $26.39.
Such a movement would open the way for a rise in the direction of the technical goal of the dominant chart pattern, which is at the $44.35 level. A change like that would represent a rise in value of 114.66% over the present situation.
SOL/USD Daily Chart
TradingView Chart: SOL/USD
Numerous indications helped to confirm Solana’s optimistic story, starting with the 100-day SMA’s upward movement at $20.47, which gave the token for the smart contract immediate support. The market was becoming more active, as seen by this. The 50-day SMA and the 200-day SMA may soon generate a « golden cross, » which is a buy signal that happens when the fast-moving SMA crosses over the slow-moving SMA, if the token price stays above the trendline and the 100-day SMA.
The price was resting on a strong downward support, which added to the optimistic narrative. Bulls might potentially reassemble and renew their purchasing power at the rising trendline and the 100-day SMA at $17.48.
The Moving Average Convergence Divergence (MACD) indicator and the Relative Strength Index (RSI) were both tipped toward the rising position, which is close to the zero line. More purchasers returning to the market demonstrated that the market was beginning to trend upward.
The price might go below the rising trendline and the 100-day SMA at $20.5 on the downside if selling pressure picks up. In very bearish scenarios, it can lose the support provided by the SMAs and proceed to retest the $8.0 swing low.
When paired with the fading histograms, the fact that the RSI and the MACD were both in the negative range indicated that there were marginally more bulls than bears.
Options Besides Solana
It might be wise to look at fresh initiatives in presale as market players wait to place their bets before seeing which way Solana chooses. Due to the low risk/reward ratio of these projects, this is a fantastic chance to diversify your cryptocurrency portfolio.
Love Hate Inu (LHINU) is one such initiative. It is a new meme coin craze that is expected to be among the greatest performers in 2023 when it is launched on exchanges. People will have the opportunity to vote on the most intriguing and important issues from around the world using the meme coin that also functions as a vote-to-earn (V2E) platform.
Additionally, the new cryptocurrency’s white paper is pretty amazing. Some of the actions and procedures they have implemented show that they are genuinely planning forward. The integrity of the polls and the voters’ anonymity will be protected by requiring voters to stake LHINU for 30 days before they are permitted to cast a ballot. In order to guarantee that the currency has a future much beyond its introduction on the CEX, they will also sell 90% of the allotted LHINU during the presale.
The project is still in the early phases of the presale, but it has already generated more than $2.6 million, and there are only five days remaining until the presale’s current stage expires and prices go up.
