The general cryptocurrency slump left all assets clinging to the support levels to stay afloat. Solana (SOL) was one of the most affected by this movement, deviating from its all-time high of $260.06 to currently trading at $13.75.
The total circulating supply of SOL stands at $362,782,994. Also, the 24-hour low is $11.l7, while the high is $13.78.
The current price reflects an increase in Solana’s price, currently ranked at number 14 on CoinMarketCap with a trading volume of $739,091,583, which is a 38.59% gain in 24 hours.
Although Solana is currently down on rankings, it is still recording massive trading gains.
What Is Giving Solana Price Support Despite The Current Trend?
Solana’s current price trend and increase in volume are supported by trader activity in the market. Despite recording a massive slump in the crypto winter, the project still enjoys massive adoption from investors.
Its fast transaction execution time has made it widely adopted by institutions and individuals alike. Experts predict that the price of Solana might rise in the coming months.
Also, the adoption of SOL for gaming and NFT makes it the ideal futuristic project for investors. SOL price is however not immune to the crypto winter currently taking place.
Solana has recently enjoyed strong adoption for NFT projects, with many notable gaming giants relying on the asset for their in-game purchases.
Solana is currently generating investors’ interest as investors look to consolidate on older and trusted tokens. With the collapse of FTX and its native token, FTT, Solana presents a viable investment option for users.
SOL Predicted To Go Bearish In Short-term
Source: Trading View
With a bearish breakout observed in the sideways channel, around the $30-$45 level, the price of SOL crashed below the critical support zone of $25-$30, reaching the $12.50 support level. The price bounced off this support level and seems to have begun a rally, currently trading at $13.75.
The MacD is below the signal line, and it implies the possibility of a bullish run. The support zone of $12 is still valid, while the resistance zone stands between the $25-30 level.
The stochastic Oscillator shows Solana in the oversold region. However, the line is attempting to re-enter the channel.
Solana’s bearish sentiment was strengthened by the demise of its strongest support platform, FTX. Despite its brief 24-hour rally, SOL will likely continue on the bearish movement for the short term.
Solana remains one of the most exciting cryptocurrency projects for investors and holds so much promise for the future. Although investors are panic selling or shorting, institutional investors are taking a long-term view of crypto tokens.
Solana will likely test the $25-$30 resistance zone before the end of 2022. Experts and investors are hoping for a more positive market outlook in the coming days.
Featured image from Pixabay and chart from TradingView.com