- The Solana price has gained 10% in valuation today, with the SOL price moving to $137.28 as the cryptocurrency market as a whole posts a 2% increase in 24 hours.
- This move comes after a bad start to the week for the entire market, with SOL still down by 5% in the last seven days and by 23% in a month.
- However, the coin still sits on a 525% appreciation in the past year, and with it retaining plenty of medium- and long-term momentum, today’s recovery could easily continue over the next few days.
As Solana (SOL) gains 10% overnight, we explore the price prediction and whether it’s time to invest in this cryptocurrency.
Is it Time to Load Up on Solana?
Looking at Solana’s technicals, it’s initially hard to decide whether it’s going to come back down again or will see further rises in the near term. On the one hand, SOL’s relative strength index (RSI) has touched 70 – an overbought position – and looks as though it has begun declining. On the other hand, the coin’s 30-day average still hasn’t climbed over its 200-day yet, meaning that the token still has time for more gains before it becomes decidedly overbought.
Solana’s Trading Volume and Market Demand
One thing that’s particularly positive about SOL’s chart today is that its trading volume has risen to $5 billion, up from only $2 billion a couple of days ago. In other words, there’s clearly a lot of demand to buy Solana at the discount offered by the recent downturn, with the alt still remaining the second-most popular alt among digital funds (behind Ethereum). The past 24 hours have also seen some very significant transfers, with one unknown wallet sending nearly $200 million in SOL to another unknown wallet in the past couple of hours.
Solana’s Future Price Prediction
SOL’s fate in the near term depends on the wider market, which appears to have bottomed out after this week’s big fall but could still have a few more wobbles before returning to sustained growth. Part of the reason for market pessimism is that the Federal Reserve doesn’t look like it will cut rates anytime soon, having kept them where they were yesterday. Yet the expectation remains that rates will be cut later in the year, at which point the market will see more obvious joy. This will help the Solana price, which could hit $150 in a few weeks and $200 by the end of the summer.
Conclusion
While the Solana price has seen a significant increase overnight, its future performance is largely dependent on the wider market conditions and the Federal Reserve’s decisions on interest rates. Despite the recent downturn, there’s still a strong demand for SOL, making it a potential investment opportunity for those looking to diversify their crypto portfolio.
