Solana price prediction reveals an extremely bullish thesis for the competitive smart contracts token which has a higher probability of hitting $100 than plummeting to $30.
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Solana (SOL) price is leading the altcoin market with its rally that has been consistent since early October. The self-proclaimed ‘Ethereum Killer’ has moved another 8.5% in the last 24 hours, bringing the cumulative 30-day gains to 130%.
At the time of writing, Friday US business hours, Solana price is trading above $50 for the first time in 18 months. The last time SOL traded at this price point was back in May 2022 within the long crypto winter.
For a moment, Solana’s rally seemed to have fizzled out after breaking above $40 with the upside capped under $45. However, renewed interest and optimism for spot exchange-traded funds (ETFs) drove buyers back into the market.
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Solana Price Prediction: Can SOL Hit $100 In 2023?
Solana has always been one of institutional investors’ most loved tokens alongside the likes of Chainlink (LINK) and XRP. Its presence in the decentralized finance (DeFi) market sets it apart from other layer-1 protocols, especially Ethereum which continues to grapple with network congestion and high transaction fees.
For this reason, it is much easier for Solana to resonate at the same frequency with institutional investors. As they seek exposure to SOL, they create liquidity, volatility and ultimately drive the uptrend.
From a technical point of view, traders are likely to keep their positions open, while investors fill their bags. The Moving Average Convergence Divergence (MACD) indicator reveals that bulls have the upper hand. In addition to the buy signal sent out around mid-October, the momentum strength indicator’s position significantly above the neutral area solidifies the rally.
All the applied moving averages continue to uphold the bullish thesis as they trail SOL price. Two golden cross patterns formed when the 50-day Exponential Moving Average (EMA) (red) flipped above both the 100-EMA (blue) and the 200-day EMA (purple).
While the bullish cross affirms the uptrend in SOL price, it might be prudent to anticipate a correction from $50 followed by consolidation. This outlook is crucial for the resumption of the uptrend, as dips allow more buyers into the market while some traders book profits. This new liquidity entering the market builds the momentum for the next breakout.
However, it could still be premature to expect an immediate correction, because higher support may form above $50, and reinforce the bullish grip. Going forward, Solana price might close the gap to $100 if the SEC approves multiple BTC spot ETFs — a development that would change the traditional investor’s perspective of Bitcoin and this would be positive for the entire crypto market, including Solana.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
