Solana Price Prediction: Is $SOL Ready to Reclaim $100 Before New Year?

1 year ago 3

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Solana Price Prediction: The competitive smart contracts token Solana (SOL), is making significant strides in the market, outshining its competitors with an impressive rally. Currently boasting a market capitalization of $40.2 billion, Solana has recently surpassed XRP to claim the fifth position in the market ranking and is now on the verge of overtaking BNB. This surge is attributed to strong fundamentals and a dynamic price trajectory, bringing the $100 price milestone within reach.

Also Read: Solana Saga Phone Faces Inventory Hurdles, What’s Next For SOL Price?

SOL Price Hits 20-Months High

The SOL price witnessing a surge in buying pressure at occasional dips reflects constant accumulation from bulls.
The rising SOL price hits a minor roadblock at $95.15
The 24-hour trading volume on the Solana coin is $6.7 Billion, indicating a 37% gain.

The Solana price recovery began in mid-September, starting from a trading point of approximately $17.5. Fueled by an overall bullish sentiment in the crypto market, this altcoin has experienced a remarkable 466% growth over the past 100 days, reaching a new yearly high of $99.5.

This rally is not just a solitary event but the result of multiple factors within the Solana network. Key contributors include a spike in whale transactions, an increase in coin holders, the popularity of its meme coin—BONK, and the Solana Saga phone.

As the SOL price approaches the significant three-digit price point, investor enthusiasm and fear of missing out (FOMO) are intensifying. On December 20th, the altcoin observed a notable influx of investment, leading to a breakout from the resistance trendline of a rising wedge pattern.

This breakout propelled the coin to its current trading price of $92.59, although it encountered slight resistance at $95.15. The presence of a long-tail rejection candle suggests that some short-term traders may have exited their positions near the $100 mark.

If profit-booking intensifies, SOL might experience a minor pullback, potentially retesting the previously breached wedge pattern around the $85 level. However, this could be a last pullback before rally beyond the $100 threshold.

Investor Confidence Soars as Solana Futures Open Interest Hits $1.25 Billion

SOL Futures Open Interest (USD)

The open interest in Solana futures has experienced significant expansion, highlighting increased activity in the market and a rising interest from investors. Data sourced from CoinGlass reveals that over the past four months, this metric has escalated impressively, jumping from $217.94 million to a robust $1.25 billion a level last recorded in December 2021. Such a notable rise in open interest, along with the ongoing recovery in Solana’s price, demonstrates a strengthening confidence among investors and a heightened engagement with this particular cryptocurrency

Exponential Moving Average: The 20-day EMA will act as strong pullback support if SOL price witness an occasional pullback
Directional Moving Index: The rising gap between DI+ and DI- slope reflects increasing buying pressure.