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Solana (SOL), in the last 72 hours, has experienced bullish sentiment that pushed its price to an all-time high of $294.33. After achieving the feat on Jan. 19, supported by the hype of surprise meme coins on the blockchain, SOL has experienced a price decline.
Solana price recovery prospects
This followed the fading hype around some meme coins launched on the Solana network. The SOL price is currently fluctuating between a low of $231.68 and a high of $258.44.
However, the coin dubbed the "Ethereum killer" appears to have started plotting a rebound to reclaim lost price levels.
Gamza KhanzadaevSOL, which looked like it would slip below the $230 support level in earlier trading, has rediscovered its bullish momentum. As of writing time, SOL's price was trading for $240.60. However, it is down by a 6.11% decline in the last 24 hours. Its market volume has also dropped by 55.4% to $13.48 billion.
However, market analysts project that Solana can stage a comeback, considering how it has pared off the losses thus far. A potential increased interest or confidence in the coin could drive prices upward, as seen in the past few days.
Some price levels have been highlighted as key pivots to watch in Solana's rebound journey.
SOL’s ability to flip the resistance levels of $247.34, $252.83 and $269.99 could see it retracing to its ATH. These price points rely on Solana’s 40-day Moving Average.
Solana network strain and investor confidence
Meanwhile, experts have called on Solana developers to work on the network infrastructure to handle high-volume transactions. They noted that the recent congestion pressure it witnessed following the launch of celebrity tokens recently contributed to a decline in price.
Arman ShirinyanAs reported by U.Today, Coinbase CEO Brian Armstrong had to communicate to assure users of his team's efforts to resolve the challenges for SOL transactions on its platform.
Despite its congestion issues, Solana emerged as the best-performing altcoin in the top 50 coins' ranking lately. This development serves as a confidence booster to investors in the asset.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Gamza Khanzadaev
Valeria Blokhina
Dan Burgin
Vladislav Sopov