Solana price has been on an upside correction for the past few days, jumping more than 4% in the past week. At the time of writing, the altcoin was trading 3.40% higher at $23.10. Solana’s market cap has jumped 4.15% to $9 billion over the last day, while the total volume of SOL traded dipped 36%. Solana currently ranks as the 10th most valued cryptocurrency after Polygon and ahead of Polkadot.
Solana price has been moving higher for the past few days despite the minor pullback in the crypto market on Friday that saw crypto heavyweights Bitcoin and Ethereum slip. Most altcoins tend to move in tandem with the assets’ performance. However, Solana was in the green on Friday, building on Thursday’s gains.
The SOL token has more than doubled this year, outperforming Bitcoin and Ethereum, as the Solana Blockchain tries to move past its association with Sam Bankman-Fried’s FTX platform. Solana price has jumped 132.50% in the year to date, surpassing Bitcoin’s 76% as well as gains in major altcoins.
The collapse of FTX which was among the biggest crypto exchanges, saw the SOL token lose more than 90% of its value. The altcoin has been suffering from the FTX overhung and has only started regaining interest in January following the launch of BONK on the network. The SOL price has erased most of its losses from the collapse of FTX, jumping 170% from its lowest point in December.
According to research firm Messari, Solana’s recovery has been helped by its NFT ecosystem growth and a record where developers raised more than $600 million in seed funding over the past two years. Notably, the recent banking fiasco, as well as recession fears, have pumped liquidity in the crypto market, pushing crypto prices higher.
Even so, investors are questioning Solana’s long-term prospects. Despite the recent surge in SOL’s price to the current $23 per token, the altcoin is yet to reach $260, achieved in 2021 amid the covid-19 pandemic era.
Solana price has been on an uptrend since the start of the year, wiping nearly 50% of its losses from the FTX fall. On the daily chart, the SOL price has moved above the 50-day and 100-day exponential moving averages (EMAs), as well as the 50-day and 100-day moving averages. Its Relative Strength Index (RSI) has ticked higher into the neutral zone.
I expect the Solana price to continue its uptrend as long as it continues moving above the trendline highlighted in yellow. The next resistance target for the Solana price will be $26. On the flip side, a flip below the trendline could pull SOL lower to find support at $18.90 invalidating the bullish thesis.