The price of Solana (SOL) has fluctuated a lot in the past week, like many other cryptocurrencies in the market. SOL is currently trading above $24, gaining 8.01% in its price in the past 7 days with over $376 million in trading volume in the past 24 hours.
The coin’s movement has now sparked speculation among investors about the imminent breach of the $30 resistance threshold.
Factors That Could Influence SOL’s Price
Solana has seen significant growth in terms of its total value locked (TVL). According to Data from Messari, Solana did better than other chains, with a 14% increase in the amount of funds locked in last month.
Additionally, data from DeFi Llama shows that Solana is now the 9th biggest chain in terms of locked funds. It has around $320.07 million locked, a big jump from the $205.11 million it had at the start of the year.
This surge in Solana’s Total Value Locked (TVL) could attract more people to buy SOL tokens. Importantly, with rising interest, the price of Solana’s tokens might increase due to higher demand.
However, if there’s suddenly bad news about Solana’s security or performance, even with a growing TVL, people might get worried and start selling their SOL tokens. This increased supply and decreased demand could cause the price to drop.
Can SOL Hit The $30 Milestone?
The daily chart shows that the asset has traded positively in the past 24-hour market circle. The coin is trading above the Simple Moving Average (SMA) indicator and is bullish, signaling a potentially strong uptrend and a positive momentum in its price movement.
Additionally, it suggests that buyers are consistently active, pushing the price higher. This often indicates sustained demand and can potentially lead to further price appreciation. Meanwhile, the SMA can act as a support level if the price dips, preventing the price from falling too much.
However, while the SMA can act as support, it can also become a resistance level if the price moves significantly above it. This is because the Relative Strength Index (RSI) at 55 suggests the coin is balanced between overbought and oversold conditions.
The Moving Average Convergence Divergence (MACD) is also showing an attempt to cross over the signal line, indicated by the red histogram bar fading. This could signal a potential shift in momentum, with the upward movement gaining strength.
Considering the analysis, SOL could potentially hit the $30 threshold in a few weeks if the bulls sustain the current market sentiment. So traders can anticipate a bullish move but should consider other indicators and market context for a more accurate assessment of the coin’s direction.
Featured image from Pixabay and chart from TradingView.com