Solana price prediction has turned bullish at $22.45 following a gain of nearly 35% in 24 hours and almost 70% in the previous seven days. This surge in the price of Solana can be attributed to the increasing demand for decentralized finance (DeFi) projects and the growing popularity of the Solana blockchain network.
The Solana blockchain provides a high-speed, low-cost platform for developers to build decentralized applications (dApps). Its scalability, speed, and affordability make it an attractive option for DeFi projects that need to process large amounts of transactions quickly and at a low cost.
With its recent surge in price, many investors are now looking at Solana as an attractive investment opportunity.
On-chain analytics firm Santiment speculates that a “short squeeze” may have contributed to Solana’s meteoric price increase. A “short squeeze,” in layman’s terms, is a sudden surge in the price of an asset due mostly to heavy short selling.
Santiment noted, “Solana has broken the $22 mark and has nearly tripled since bottoming off around $8 two weeks ago, Shorts pushed the bounce.”
According to the on-chain analytics firm, traders on Binance have consistently shown a bearish bias toward Solana since the beginning of this month. The article noted that as the price of SOL bottomed out on December 30th, even greater ratios of SOL shorts began to open. Since its low point, the price of SOL has risen by 170%.
Blockchain Activity On Solana Network Showing No Signs Of Slowing Down
Despite the fact that an estimated 50 million Solana coins are stuck in cryptocurrency exchanges FTX’s Chapter 11 proceedings, Citi Research reported Thursday that activity on the Solana blockchain is still high. According to the analysis, this has drastically decreased the available cryptos and raised the level of doubt surrounding the future of the blockchain.
Citi Research analysts led by Joseph Ayoub noted that “many critical measures” like as “active addresses” and “daily non-fungible-token (NFT) volume” had recovered to pre-FTX-collapse levels, possibly signaling comfort from some users on the chain.
After a week of inactivity on the blockchain, Citi claims that developers have returned with the airdrop of Bonk tokens to Solana holders. To encourage the widespread use of a new digital currency, “airdrops” occur when a certain number of its tokens are distributed free of charge to certain wallet addresses.
Solana’s largest NFT collection, DeGods, abandoned the chain last month due to uncertainty about its future, and the memo identifies retention of users and developers as the network’s primary concern.
Solana’s token “slow burn lower” through the end of the year, dropping as high as 20% on December 29. SOL’s price then doubled in the weeks that followed Ethereum’s inventor Vitalik Buterin’s backing for the blockchain, with around $550 million in short liquidations during the same time frame, according to the report.
Solana Price Prediction
Solana’s current price is $22, with a 24-hour trading volume of $3 billion. SOL has increased by nearly 35% in the last 24 hours. CoinMarketCap now ranks #11, with a live market cap of $8 billion.
So far, Solana has completed a 50% Fibonacci retracement at $23.65, and closing candles below this level indicate that the bullish trend may be tiring. That being said, if SOL fails to cross above the $23.65 level, it may experience a slight drop until the next support level of $19.50 or $17.50.
The SOL/USD pair is trading above the 50-day moving average, with support near $15. Alternatively, a continued rise in SOL could cut through the $23.65 level, leading to SOL prices of $27.56 or $32.45 levels.
Buy These Coins Now For Quick 3x Gains Ahead
The market is experiencing a risk-on sentiment, which is driving the overall cryptocurrency market upward. As a result, in addition to Solana, it is worthwhile to pay attention to the following coins.
Meta Masters Guild (MEMAG)
Meta Masters Guild, a mobile-focused gaming guild that will create a combination of Web3 and play-to-earn games, has begun its presale. Its Ethereum-based games will have playable NFTs as well as incentives that can be swapped for MEMAG, the company’s native token, which can then be staked and sold.
It will be issued in seven stages, the first of which will deliver one MEMAG for $0.007. This price will eventually rise to $0.023, representing a 228.5% increase for early investors even before MEMAG becomes public.
Meta Masters Guild is projected to grow fast when the platform’s first game (Meta Kart Racers) is released in the second quarter of this year. Furthermore, if the world market and economy improve, the native coin may benefit greatly.
The FightOut (FGHT) platform functions similarly to a personal trainer, with the exception that workout time is pre-paid using the FGHT token. All activities are tracked and can be used to improve the metrics of one’s metaverse avatar.
The FGHT presale is going well, with almost $2.90 million raised thus far. The current selling price of 60.06 FGHT for $1 (FGHT may be bought using ETH or USDT) is expected to rise as the sale progresses.