- Solana needs to hold the $200 to target a surge to $220 as Trump’s inauguration draws nearer
- However, traders shouldn’t expect smooth sailing anytime soon
Without a doubt, the oversold signal from Solana has drawn significant interest from investors, leading to a substantial increase in its trading volume by approximately 60%. This surge resulted in a strong, green candlestick formation, causing SOL to rise by an impressive 9% within a single day and regain the $200 mark – a level it hadn’t reached for a week.
Currently, there’s a lot of talk about a possible quick rise in price up to around $220. Let’s explore the possibilities.
Investors need to show more confidence in Solana
Currently, Solana is currently trading approximately 20% higher than its recent low at $168, indicating that it has room to continue rising. The Relative Strength Index (RSI) is neutral, while the Moving Average Convergence Divergence (MACD) is now trending bullishly, suggesting that positive momentum could potentially increase further.
Glancing at the wider market scenario, it appears that large-altcoins are attracting new investments. However, none of them have managed to breach significant resistance points, with one exception: XRP, which has moved beyond its previous highs reached in November.
To reach $220, Solana must increase by approximately 10%. This increment appears attainable in the near future. Yet, while it has been on an upward trajectory, its volatile pricing patterns underscore a significant challenge – Investors remain uncertain about maintaining long-term trust.
To reach the desired goal, a significant 30% rise is required following the recent drop, which might prompt selling by investors – Particularly if they choose to sell ahead of schedule.
Additionally, it’s worth noting that the trading volume for the SOL/BTC pair was relatively low at 166,460 units, a significant difference compared to the 55 million in volume for the XRP/BTC pair. It appears that investors are showing more interest in other altcoins during this market cycle.
But, it might not be too late…
As the crypto market prepares for a possible bull run before Trump’s inauguration, there’s anticipation of new funds flowing into the market. To lure this incoming capital, Solana needs to maintain a price point around $200 – a level that could trigger fear of missing out (FOMO) and attract investors.
The Futures market is displaying indications of this transition, as volume has increased by approximately 49.61% and Open Interest (OI) is only 4% shy of its record high of $6.68 billion – This coincides remarkably with Solana’s mid-November peak of $264. It’s now crucial to keep the price above $200 to prevent a possible long squeeze from happening.
Realistic or not, here’s SOL’s market cap in BTC’s terms
It appears that Solana’s potential 10% increase is looking likely, but it’s the broader market conditions that will primarily fuel this growth. Given the wavering investor trust, a prolonged upward trend might not be certain. Many traders might choose to cash out prematurely in pursuit of a quick 30% gain. Thus, be prepared for some market turbulence as Solana approaches significant price points.
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2025-01-17 01:11