Solana (SOL) dropped to its lowest level since February 2021 last week, but after nine days of continuous declines, the SOL price has now rebounded from below $8 to above testing resistance at $14 as of January 4.
Some attribute the current surge to Solana community members’ interest in Bonk (BONK), a new meme token that airdropped roughly 50% of its 56 trillion token supply to users last week, and crypto traders and investors are now monitoring the SOL as a result to see where it will trade over the next month.
Notably, the machine learning algorithms at the crypto tracking platform PricePredictions have predicted that the price of SOL on January 31, 2023, would stand at $13.73, according to data retrieved by Finbold on January 4.
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The AI algorithm uses technical analysis (TA) indicators, such as the relative strength index (RSI), Bollinger bands (BB), moving averages (MA), moving average convergence divergence (MACD), and others, to forecast a 2% increase from the price of Solana at press time.
Solana price analysis
As things stand, Solana is changing hands at $3.51, a 13.83% increase in the last 24 hours, and is up a further 34.66% across the last week with a total market capitalization of $4.96 billion.
In the last week, Solana has added over $1 billion to its market worth, from $3.67 billion on December 28 to $4.96 billion on January 4.
The inflow into Solana in the last week will be welcomed by investors in its community who have recently seen extreme volatility in Solana’s price for a variety of different reasons, including the fact that one of its most notable supporters is the now-disgraced former CEO of FTX, Sam Bankman-Fried, and leading non-fungible token (NFT) companies abandoning its blockchain.
SOL technical analysis
Analyzing TradingView’s technical analysis (TA) indicators on the 1-day timeframes, gauges are predominantly bullish. The summary of the gauges aligns with the ‘buy’ sentiment at 11 while moving averages also point to a ‘buy’ at 9. Lastly, for oscillators, the gauges are for ‘neutral’ at 8.
While Bonk is gaining traction, it is possible that it will experience the same fate as other meme- or dog-focused crypto tokens, which often experience a pump, followed by a severe drop, and then very little or no rebound. However, it has helped the Solana ecosystem gain traction at a time when many crypto players saw it crashing to as low as $5.
Even with all the buzz around the dog coin, Solana’s future is still not certain, despite the fact that the cryptocurrency has shown some signs of improvement. Since the beginning of November, Solana has fallen from being the fifth-largest token to being the 15th-largest token, and it is now the cryptocurrency that is trending the most on CoinMarketCap.
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