What's Going on with Solana Price?
Solana reached incredible heights of $125 in December, but the price soon fell sharply below $100. Now the asset is gaining momentum again. What is happening with Solana and does it have a chance for new growth?
Solana is on a roller coaster
The price increase began back in October 2023 with a notable spike in late December. SOL reached a high of $125 but lost its gains in early January. Solana's December growth was due to the emergence of more DeFi projects, successful NFT sales, and increased attention to some tokens across the ecosystem. The sharp drop of 33% caused concern among investors and experts. The excitement around meme coins went down, causing the prices to fall by 80%, Solana investors began to fix profits and move to other blockchain networks. All this influenced the fall of Solana's price.
The token started to rise this week, and here's why. The popular Solana ecosystem tokens, BONK and JTO, listed on OKX on January 8. Both tokens are promising and have already garnered a lot of attention from the community. JTO is the native token of the decentralized liquid staking platform Jito. With liquid staking gaining more attention and conversation, it is no surprise that JTO has become one of the sought-after tokens in the ecosystem recently. BONK is a meme coin that is also showing good price performance. Thus, Solana's price rose by 13% after OKX announced the listing of its ecosystem tokens. By the way, BONK and JTO also increased in price amid the listing event. BONK grew by 35%, and JTO grew by 12%.
Another reason for increased attention to Solana was the listing of margin pairs on Binance. The exchange introduced cross-margin pairs BNB/USDC, NFP/USDT and SOL/ETH. Solana continues to generate interest for another reason as well. The community is in anticipation of the launch of the Firedancer client. It will make the network more reliable and efficient. This step will bring the ecosystem closer to decentralization.
Solana price prediction
The price of Solana has gained 15% in the last 24 hours and is trading at $101 at the time of writing. Despite the recent sharp decline and short-term dominance of sellers, the asset is on an uptrend thanks to the $85 support level.
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Therefore, SOL is expected to rise in the near term, it requires a clear close with high volume above $100. Provided Bitcoin ETFs are approved, altcoins could take off following the major cryptocurrency, with SOL potentially testing a high of $125. A 43% jump in trading volume indicates traders' renewed interest in the ecosystem, pointing to an upcoming price surge. This came as a result of Crypto.com's new initiative, which intends to reward Solana stakers with Bitcoins.
On the negative side, traders could start selling off and Solana could fail to hold at the $85 support level and fall below $60.
This is not a 100 percent statement. The cryptocurrency market is very volatile and unpredictable. Do your own research.
