Bittime - Solana price briefly surpassed $170 a day after Bitcoin price hit a new all-time high of $73,737. The third-largest smart contract token has surged since the start of Q4 last year from $20, providing profits for patient investors. However, the SOL token is predicted to fall to $140 before rising again.
Solana Price Increase: What is the Cause?
SOL, the token that powers the Solana ecosystem, is encouraged by positive market sentiment. After faltering at $80 last January (down from a peak of $125 in December), Solana managed to bounce back amidst crypto market uncertainty.
Apart from being supported by a general bullish trend and growing interest, Solana has a dynamic ecosystem. This ecosystem brings together developers in decentralized finance (DeFi), stakeholders in Web3, investors, and more.
Check Today's Crypto Market:
Solana's performance in its previous bull run, when its price hit a new high of $260, gave rise to FOMO (fear of missing out) among investors. Those who predicted a surge in Solana prices were willing to bet even though the price was already high.
Why Solana's Rise Might Take a Temporary Pause?
According to the Relative Strength Index (RSI), Solana is currently "overbought" (too high) in both the short and long term. However, the 4-hour chart shows a neutral RSI and is starting to fall from a high of around 80.
The nearest support level at $170 has been broken, paving the way for a price correction. Currently the SOL price is around $167 and is expected to try to recover back to the previous day's opening level of $163.88.
Solana's price decline from its recent high was likely driven by profit-taking. This is the first reason why Solana price could drop to $140 before climbing back to the psychological resistance at $200.
The Money Flow Index (MFI) indicator that measures money flows in and out of Solana shows increased selling pressure. If the downtrend from the “overbought” zone (70 – 100) continues, SOL will have no choice but to look for support at $160.
Also Read How to Buy Crypto:
Slightly below this level is the 20-day Exponential Moving Average (EMA) which, along with the dotted ascending trendline, may be able to withstand selling pressure and prevent Solana from falling to $150 or $140.
Uncertainty colors Solana price predictions. Although the crypto market is bullish at the moment, it is unclear whether a significant price correction will occur before the Bitcoin halving event in April.
The phenomenon of "buy the rumor, sell the news" often occurs in the crypto market. Investors buy crypto assets during rumors or ahead of major events, then sell them immediately after the event occurs.
Bitcoin halving is an event that occurs every four years to control inflation by reducing the supply of BTC in the market. This is done by cutting the rewards for Bitcoin miners in half.
Check Crypto Prices Today:
When supply decreases and demand increases, the price of Bitcoin will usually rise after the halving. Positive sentiment throughout the market also increased, which also triggered an increase in altcoin prices.
However, this “buy the rumor, sell the news” pattern can impact the performance of major altcoins such as Ethereum and Solana. Both could experience significant declines if Bitcoin faces extreme volatility.
How to Buy Solana (SOL) on Bittime
You can buy and sell Solana (SOL) in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Solana (SOL) is available on Bittime with the market pair SOL/IDR. To be able to buy SOL IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete guide on how to buy Solana (SOL) on Bittime.
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
What is Harambe on Solana (HARAMBE)? Solana Based Cryptocurrency
What is a Solana Virtual Machine (SVM)? Understanding the Core Technology Behind Solana
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.