Solana (COIN: SOLUST) is enjoying a positive start to 2023 after spending most of 2022 declining due to the cryptocurrency winter. Moreover, SOL’s exposure to FTX caused its price to drop rapidly after the November 2022 FTX saga.
SOL has also benefited from the recovery of the cryptocurrency market as it continues its climb to the top. Although still off its all-time high (ATH), it is showing positive signs in 2023.
What is driving Solana’s price increase?
Solana has launched a series of innovative projects that have sparked interest in the crypto community. Solana Mobile On Twitter, it announced its plans to launch the Solana Mobile stack and Saga phones. This mobile device aims to provide users with easy access to the blockchain. They assured users that it will be available in early 2023.
In addition, Solana offers its users a seamless payment protocol which was launched in February 2022. Brands such as @tweet And @tweet Use this innovation. The payment channel allows merchants to interact on a secure blockchain and process payments efficiently.
Moreover, it became Solana Network developer center, As of December 2022, 2053 active developers have worked on the blockchain. These developers take advantage of the network’s unique proof-of-date mechanism to develop innovative applications on the network.
The network is proud to be carbon emissionsIt does not rely on energy-intensive methods such as PoW. This means that the project is in line with environmental goals. The SOL Network has also advanced with Web3 in partnership with brave. Solana is integrated into the Brave browser, making it easier for more people to join the Web3 trend.
These factors, and other macroeconomic factors such as lower inflation, helped the marked improvement in prices in SOL. Investors expect the rally to continue unimpeded by external factors.
Solana price forecast
Solana is currently trading at $23.44 on the cryptocurrency market. On the price charts, more green candles are showing increasing bullish momentum. The SOL is trading above the 50-day simple moving average (SMA) and below the 200-day moving average (SMA). This pattern indicates that the rally may be short-lived. However, the SOL is approaching the 200-day SMA and is likely to break above it in the coming days.
The support levels are at $20.53, $21.57, and $22.58. The resistance levels are at $24.64, $25.68, and $26.69. Solana is currently testing the $24.63 level, with a slight pullback to the upside. The Relative Strength Index (RSI) is overbought at 79.29; The RSI may decline and fall into the neutral territory.
The Moving Average Convergence/Divergence (MACD) is currently above the trigger line and is showing a bullish signal. Solana is likely to continue its upward trend in the coming days.
Investors should remember that if an altcoin loses half of its value (50%), it will have to rise 100% to get back to that value. Such an assembly can be a challenge. Volatility is also a key factor to consider when investing in altcoins or any cryptocurrency.
With info from NewsBTC