Today, Solana’s price is on the rise, triggered by a strong recovery in the crypto market. This rebound comes after the crypto market experienced its most bearish week since June 2023, driven by Iran’s drone attack on Israel over the weekend. However, following a network upgrade on the SOL blockchain and approval of the spot Bitcoin and Ether ETFs by the Hong Kong regulatory body, Solana price has now gained buying dominance and aims to surge higher.
Solana Faces A Revival Following Market Crash
Key factors sending Solana and the crypto market upwards include the recent green lights for spot Bitcoin ETF products in Hong Kong and a rising buying demand on the imminent Bitcoin Halving in April.
Following the regulatory nods for nine spot Bitcoin ETFs in the U.S. on Jan. 11, the altcoin market has surged by 30.5%, reflecting traders’ confidence that these approvals could draw institutional investors and pave the way for ETF approvals for other cryptocurrencies like Solana. Additionally, today’s gains for SOL came following an update focused on addressing Solana’s existing network congestion problems.
In March, SOL blockchain experienced a 75% transaction failure, following increased memecoin launches and user activity. Transaction volumes surged to $4 billion, exceeding daily averages of $500 million in 2023. Version 1.17.31, launched today, is the first of planned updates to tackle Solana’s network congestion. As a result, Solana-based memecoins like WIF, BONK, and MEW have surged in the past 24 hours.
However, Solana’s on-chain metrics remain in the bearish region despite the price surge. The total fees on Solana have been on a decline and recently touched the $1 million mark. Moreover, the total value moved on-chain faced a decline by $3 billion as open interest in the SOL network continued to decline last week.
What’s Next For SOL Price?
Solana (SOL) has successfully recovered from its recent low of $125 following bullish news that triggered massive buying interest. As a result, the price of SOL broke above several Fib levels and gained the $150 mark. As of writing, SOL price trades at $147.5, surging over 7% in the last 24 hours.
The price dipped below multiple EMA trend lines; however, buyers are currently aiming to send the price above the EMA20 trend line. However, if the price fails to hold above $150, it might trigger a short-term selling activity. Currently, bears are strongly defending the $150 level.
Both moving averages are trending downward, and the RSI is dropping below the midline, signaling bearish dominance. However, a sharp downturn and a close below the support line of $125 for the SOL/USDT pair could be strongly defended by buyers, leading to a rebound.
A drop below $125 might send the SOL price below the $100 mark. To prevent this decline, buyers need to hold the price above $160 and initiate a retest of the descending resistance line.
