Highlights:
- Solana is currently in a bullish continuation after correction to $231.06
- Momentum driven by Bitcoin’s price action and rising Solana adoption
- An increase in bullish sentiment would put Solana on course to $300
Solana continues to trade in the overall direction of Bitcoin, and that’s a plus in terms of its overall price action. That’s because Bitcoin continues to show upside momentum and is now edging closer to $94k. When going to press, Solana was down slightly by 4.18% to trade at $235.39.
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However, this intra-day correction is more of a buying opportunity than an actual price correction. That’s because the charts present a picture of a cryptocurrency that has been making higher lows in recent weeks. This means the correction is more of a market breather than anything else.
Technical Analysis – Solana Price Making Higher Lows
For context, the 1-day chart for Solana shows that Solana has dipped slightly after the rally on November 17/18 that pushed it from a low of $213.11 to a high of $247. However, the correction has barely managed to put a dent in the price as Solana is still within the November 18 closing price of $237.41.
Bulls are also taking the price higher and could close the day above the November 18 price of $237.41. This all points to the underlying strong buying momentum in Solana and puts the November 18 high of $248.46 in focus. If bulls push Solana through this high, then a rally to $300 could be within reach in the short term.
However, markets are always unpredictable and a correction can always happen. In the event of a correction, the key level to watch would be the $225.46 support. This price level was a key resistance level for months but has now turned into support.
A push through it could mark a short-term correction for Solana. That’s because it would mean that the already established bull trend would be broken in the short term. In such a case, Solana could drop to around $200. Despite such a possibility, the odds are higher that Solana is headed for new highs, with $300 being the first level to watch in the short term. Several important factors support Solana’s price action.
Rising Bullish Momentum Across the Market
One of the key factors that could help drive momentum into Solana is Bitcoin. Bitcoin remains the undisputed indicator of the overall direction of the cryptocurrency market. Anytime Bitcoin moves up, Bitcoin also follows.
In this case, Bitcoin is sending bullish signals as it trends towards $94k. This is likely to inspire investors to buy into altcoins in anticipation of gains that outperform those of Bitcoin. This may explain why Solana’s chart points to a potential continuation of the bullish momentum it has built up so far.
Solana’s Dominance In Meme Coins
Besides Bitcoin, Solana continues the undisputed king of launching meme coins. This is largely due to its low transaction costs that lower the barrier for a lot of traders and meme coin traders. Already platforms like Pump.fun continue to register huge numbers of tokens daily. Since these tokens are Solana-based, it means they add to the demand for the SOL token, a factor that can play a role in its price action going into the future.
Stable Coins Moving to Solana
Solana has also caught the attention beyond the meme coin space, as it continues to eat into Ethereum’s market. One market where Solana is gaining traction is stablecoins. Top DeFi platform, Sky, which was formerly known as Marker has announced that it launching the USDS stablecoin on the Solana network. Sky noted that this move was motivated by a need to increase Solana DeFi’s liquidity.
Recap
Overall, Solana’s demand is on the rise driven by the actual adoption of the Solana network. The chart pattern also points to a bullish continuation pattern, reflecting the rising importance of the Solana network in the market today.
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