Dogwifhat (WIF) has rapidly increased in value in the past several weeks. Its potential to reach $1 depends on numerous factors like favorable market conditions.
Short-term predictions suggest a 2024 price range of $0.33 to $0.76, while long-term expectations see it possibly exceeding $2.50 by 2030.
Is There a Chance?
Despite emerging less than two months ago, the Solana-based meme coin dogwifhat (WIF) managed to get a significant amount of attention. Its price spiked by over 90% in the past month and currently hovers around $0.30 (per CoinGecko’s data). We decided to ask ChatGPT whether the upswing could continue throughout 2024 and if WIF can hit the $1 milestone.
The AI-powered chatbot estimated there is such a chance, but the probable rally relies on multiple factors, including market sentiment and investor behavior.
Meme coins like WIF often follow the price trajectory of leading cryptocurrencies like Bitcoin (BTC). According to many experts, the latter is poised for an uptrend in the following months due to the upcoming halving, possible pivot from the Federal Reserve on its anti-inflationary policies, and other potentially bullish events.
ChatGPT also claimed that WIF’s value could head north should its community (investors, developers, and supporters) grow. This might increase the asset’s popularity and attract new potential buyers.
Some entities, including the aggregate platform CoinCodex and the prediction website DigitalCoinPrice, have already laid out WIF forecasts. The former envisioned that the meme coin would trade within the range of $0.33 – $0.48 throughout the year, whereas the latter set a maximum level of $0.76.
PricePrediction.net and Bitnation expect dogwifhat’s value to surpass $2.50 by 2030, which indicates a more gradual increase over the long term rather than an explosion toward the $1 mark in the upcoming months.
WIF’s Recent Progress
WIF took center stage in mid-December when its price was exploding on a daily scale, coinciding with the impressive rally of Solana (SOL). Despite its brief plunge after Christmas, the meme coin started pumping again at the beginning of January.
Its uptrend could be attributed to the actions of numerous major cryptocurrency exchanges, which embraced the asset. BitMEX was among the first to list the perpetual swap contract WIF/USDT.
Shortly after, Binance did the same, whereas Bitget placed the token into its Innovation and Meme Zone. Assets in that section are evaluated for a 60-day period and could be officially listed if meeting certain criteria.
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Dogwifhat (WIF), a Solana-based meme coin, has experienced a significant price increase following support from a major crypto exchange.
Similar digital assets have also seen notable market movements recently.
The recently-emerged Solana-based meme coin – dogwifhat (WIF) – is among the best-performing cryptocurrencies today (January 24), with its price rallying by over 30% and exceeding the $0.30 mark (per CoinGecko’s data).
WIF Price, Source: CoinGecko
The reason behind the uptrend is likely in the fact that Bitget added support to the asset, placing it into its Innovation and Meme Zone.
The company puts trending tokens in that section for a 60-day valuation period. Meeting certain criteria might lead to their official listing on the platform.
Other crypto exchanges that have recently embraced dogwifhat are Binance, Bybit, and BitMEX.
Another factor possibly contributing to WIF’s latest rise could be the price resurgence of SOL, which is up 8% on a daily scale.
Dogwifhat is not the only Solana meme coin to have made waves in the past few months. As CryptoPotato previously reported, Bonk Inu (BONK) received support from leading exchanges like Binance and Coinbase, and its market capitalization surpassed the $2 billion milestone in mid-December.
However, the figure rapidly decreased in the following weeks, sitting at its current level of approximately $670 million.
Myro (MYRO) has also been in the spotlight, with its value skyrocketing by almost 1,000% in the past 30 days and hitting an all-time high of nearly $0.25 last week. As of the moment of writing these lines, it trades at around $0.21.
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According to on-chain data from SolanaFloor, Solana is dominating other blockchains, including Ethereum and Polygon, across various non-fungible token (NFT) activity metrics in the third week of January.
Solana Dominates Ethereum, Bitcoin In NFT Activity
In a post shared on X on January 23, Solana maintained its NFT dominance among competing blockchains, mainly Ethereum and other high throughput alternatives. Thus far, the blockchain has the highest numbers in unique wallets, transactions, unique buyers, and first-time wallets over the past week.
Solana unique wallets | Source: SolanaFloor via X
To illustrate, Solana had over 106,000 unique wallets by the third week of January 2024. This is more than twice those created in Ethereum. Meanwhile, there were over 22,000 first-time wallets on Solana, roughly 3X those in Ethereum and 2X in Bitcoin.
At the same time, more than 2.8 million transactions were posted on Solana. This figure is over 20X those in Ethereum during the same time frame.
Extrapolating from this data suggests that the blockchain is increasingly popular among NFT projects, collectors, and traders. Several factors could be contributing to Solana’s NFT success.
The platform is known for its high throughput and low transaction fees. Considering how minters and active traders are sensitive to trading fees, Solana is emerging as a layer-1 option for projects wishing to enjoy the security of the mainnet while also benefiting from low transaction fees.
Legacy chains, including Ethereum, continue to struggle with on-chain scalability. Minting on the mainnet often translates to high fees, which can decrease profitability, especially for active traders and collectors.
Beyond scalability advantages, Solana’s ecosystem is rapidly expanding. Despite the catastrophic drop of SOL prices at the end of 2022, the spectacular revival in 2023 activated on-chain activity with meme coins blooming and NFT projects opting to launch on Solana.
The ongoing recovery of SOL and the increasing number of projects opting to deploy on the mainnet could further drive on-chain activities, including NFT minting and trading, to new levels in 2024.
Developers At Work, Will SOL Reclaim $125?
As the network draws users, its developers are also working to make the platform more robust and decentralized. In 2024, Solana developers plan to activate Firedancer, a validator client developed by Jump Capital. This client will help further decentralize Solana’s infrastructure, improve performance, and substantially improve reliability, eliminating network hitches that plagued the blockchain in 2022 and early 2023.
SOL is cooling off, trading at around $80 when writing. The coin is down 34% from December 2023 peaks and below the dynamic 20-day moving average, pointing to bears.
Key support remains at around $70. If there is demand at this price point, SOL may recover and retest $125 in the sessions ahead.
Feature image from Canva, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
According to the latest on-chain data, the Layer-1 network Solana has hit a significant milestone in terms of the transfer volume of stablecoins this month.
Solana Overtakes Tron In Stablecoin Transfer Volume
Data from the blockchain analytics platform Artemis shows that the stablecoin transfer volume on Solana has already surpassed $300 billion in January. This is the largest transfer volume recorded by stablecoins on the Layer-1 blockchain in a single month.
To put this figure into context, the Solana network registered $297 billion in stablecoin volume in the entire December. Meanwhile, the blockchain’s stablecoin transfer volume was about $11.56 billion in January 2023, reflecting an over 2,500% growth in the past year.
Stablecoin transfer volume across various blockchains in the past year | Source: Artemis
From the chart above, it is clear that Solana’s stablecoin activity has been on a steady rise since October, increasing by more than 650% in the past few months. This growth has also impacted the network’s share in the stablecoin market, with Solana now boasting about 32% market share.
Unsurprisingly, Ethereum leads the market for stablecoins, with its transfer volume already reaching almost $317 billion in January. Meanwhile, the Tron network trails Solana in third place, with a stablecoin volume of roughly $240 billion.
Paxos is thrilled to share our regulated stablecoin USDP is now live on the @solana blockchain! This integration makes it easier for anyone to access and use the safest, most reliable stablecoins in the market. Learn more here: https://t.co/0j4Kj0yyPkpic.twitter.com/1doexKvVmY
Despite Solana’s burgeoning network activity, the price performance of its native token SOL has somewhat dampened in the past few weeks. As of this writing, the Solana token is valued at $92, reflecting a 0.6% decline in the last 24 hours.
This sluggish performance in the past day underscores the altcoin’s challenges since the turn of the year. After reaching a multi-month high of $124 at the end of 2023, the SOL price has largely struggled to hold above the $100 mark.
According to data from CoinGecko, the Solana token is down by more than 5% in the past week. Meanwhile, the coin has declined by about double that figure since the beginning of 2024.
Nevertheless, SOL maintains its position as the fifth-largest cryptocurrency in the sector, with a market capitalization of more than $40 billion.
Solana price faces downward pressure on the daily timeframe | Source: SOLUSDT chart on TradingView
Featured image from Dreamstime/Aivaras Sakurovas, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Dogwifhat (WIF), a Solana-based meme coin, saw a substantial price increase recently.
A potential surpassing of Shiba Inu’s market cap hinges on factors like community support, use cases, market trends, and more.
What are the Chances?
The Solana-based meme coin – dogwifhat (WIF) – has been among the best-performing cryptocurrencies in the past two weeks, with its price exploding by triple digits (per Coingecko’s data) and market cap briefly exceeding $450 million.
WIF Price, Source: CoinGecko
We decided to ask ChatGPT whether the uptrend could continue throughout 2024 and whether flippening Shiba Inu (SHIB) is possible.
The AI-powered chatbot claimed this might happen should WIF significantly strengthen the size and activity of its supporter base (including developers and investors). According to a recent analysis, Shiba Inu (SHIB) has the most devoted community in the meme coin realm, whereas Dogecoin (DOGE) is second.
Use cases and utility were also mentioned as major elements. “If dogwifhat offers more practical or innovative solutions than Shiba Inu, it could potentially gain an edge,” it estimated.
Favorable market trends, appropriate regulatory changes, and strategic partnerships could also boost the market capitalization of WIF.
Last but not least, ChatGPT touched upon investors’ behavior, suggesting that a growing buzz surrounding the Solana meme coin might trigger a substantial flow of capital into its ecosystem.
Shiba Inu’s current market cap is almost $5.5 billion, meaning WIF should rely on multiple factors for an eventual flippening.
WIF’s Recent Progress
The Solana meme coin, launched in mid-December, rallied exponentially last month, reaching $0.32 a few days before Christmas. However, its price experienced enhanced volatility shortly after, dropping below the $0.10 mark at the beginning of January.
The hype surrounding the coin returned earlier this week, with WIF’s value hitting an all-time high of over $0.45. Its peak could be attributed to major listings on leading cryptocurrency exchanges. As CryptoPotatoreported, Binance and BitMEX launched WIF/USDT perpetual contracts, while Bybit and Kucoin also embraced the token.
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Solana is moving lower from the $120 resistance. SOL price is showing a few bearish signs and might decline sharply toward the $80 support.
SOL price started a fresh decline from the $120 resistance against the US Dollar.
The price is now trading below $102 and the 100 simple moving average (4 hours).
There is a key contracting triangle forming with resistance near $102 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
The pair could continue to move down toward the $85 support or even $80.
Solana Price Faces Uphill Task
After a steady increase, Solana bulls struggled to clear the $120 resistance. SOL price formed a short-term top and started a fresh decline below the $112 support, like Bitcoin and Ethereum.
There was a steady decline below the $105 level. The bears pushed the price below the $100 level. It tested the $91.50 support. A low is formed near $91.38, and the price is now consolidating losses. There is also a key contracting triangle forming with resistance near $102 on the 4-hour chart of the SOL/USD pair.
SOL is now trading below $102 and the 100 simple moving average (4 hours). Immediate resistance is near the $97.40 level. It is close to the 50% Fib retracement level of the downward move from the $103.39 swing high to the $91.38 low.
The first major resistance is near the $100 level or the 76.4% Fib retracement level of the downward move from the $103.39 swing high to the $91.38 low.
The main resistance is now near $102. A successful close above the $102 resistance could set the pace for another major rally. The next key resistance is near $112. Any more gains might send the price toward the $120 level.
More Losses in SOL?
If SOL fails to rally above the $102 resistance, it could continue to move down. Initial support on the downside is near the $92.00 level.
The first major support is near the $85.20 level, below which the price could test $80. If there is a close below the $68 support, the price could decline toward the $74.50 support in the near term.
Technical Indicators
4-Hours MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $85, and $80.
Major Resistance Levels – $97.40, $102, and $112.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Digital asset investment products experienced a $1.18 billion increase in inflows last week, according to CoinShares. This figure, however, did not surpass the previous high set in October 2021 when futures-based Bitcoin ETFs garnered a total of $1.5 billion.
The latest edition of “Digital Asset Fund Flows Weekly Report” further revealed that the trading volumes for Exchange-Traded Products (ETPs) did break records by reaching $17.5 billion last week, marking the highest recorded level. This significantly surpassed the 2022 weekly average of $2 billion.
CoinShares’ estimatest suggests that the trading volumes constituted almost 90% of the daily trading volumes on reputable exchanges last Friday, a noteworthy deviation from the typical range of 2%-10%.
Bitcoin’s Unrivaled 98% Inflows, Solana Sees Decline
After an impressive streak, Solana amassed only $0.5 million in inflows over the past week, indicating a current preference among investors for products linked to the leading crypto assets.
Interestingly, Solana’s inflow was lower than those of Cardano and Litecoin, which attracted $1.4 million and $0.8 million, respectively. As such, Bitcoin continued to dominate funds with a whopping $1.16 billion in weekly inflows and 98% of the total inflows. This also represented a significant 3% of total assets under management (AuM).
Short-bitcoin also registered minor inflows totaling $4.1 million, the report revealed.
During the same period, Ethereum experienced total inflows amounting to $26 million, while XRP saw inflows of $2.2 million. Polkadot, on the other hand, settled with a modest $0.2 million in weekly inflows.
US Dominates Inflows
The approval from the Securities and Exchange Commission for the first-ever spot Bitcoin ETF was a watershed moment for crypto. Amidst such a heightened level of excitement, the United States took the lead as anticipated, with a substantial influx of $1.24 billion recorded last week.
In a notable development, Switzerland also witnessed significant activity, observing inflows totaling $21 million.
CoinShares’ Head of Research, James Butterfill, asserted that the outflows observed in Europe and Canada, amounting to $44 million in the latter, $27 million in Germany, and $16 million in Sweden, may be attributed to basic traders seeking to transition from those markets to the United States.
Meanwhile, blockchain equities saw substantial inflows amounting to $98 million, contributing to a cumulative total of $608 million in inflows over the past seven weeks.
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Crypto YouTuber Jake Gagain has shared his “insane price prediction” for Solana (SOL) as he said that the crypto token will climb to $750. The crypto analyst didn’t stop there as he also provided a timeframe for when this price level would be attained.
Solana Price To Rise To $750 In 2025
Gagain said that he expects Solana to hit this price level by 2025 in an X (formerly Twitter) post. In the accompanying video, he outlined several reasons for this bullish sentiment. For the first, he alluded to the fact that the Solana network happens to be “quicker, safer, and much more affordable” than Ethereum.
According to him, more users from Ethereum and other networks are likely to migrate to the Solana network as more projects get built on it. This is based on his expectation that Solana will be the “top competitor” for Ethereum in the next bull run. Gagain further asserted that SOL will end up becoming the third largest token by market cap, only behind Bitcoin and Ethereum.
The second reason why the analyst is bullish on SOL is because of how it has impressively recovered from the FTX scandal. Solana was at the heart of it as the crypto exchange’s founder, Sam Bankman-Fried (SBF), was one of the token’s biggest backers. SOL dropped below $10 as a result of this while being in the middle of a bear market.
However, it has recovered nicely since then, climbing above $100 towards the end of last year. That is why Gagain believes that the crypto token could go as far as hitting its all-time high of $260 and surpassing it.
SOL Is Also Making Its Way Into The Traditional Market
Jake Gagain also highlighted the fact that Solana was making its way into the traditional market as another reason he was so bullish on SOL. Solana’s entry into the traditional market is said to be happening through its partnerships with notable brands. One of them, which the crypto analyst mentioned, was its partnership with Shopify.
Back when the partnership was confirmed, NewsBTC highlighted how it could help onboard more users into crypto and specifically into the Solana ecosystem. The network was projected to see more activity, considering the number of users Shopify already has.
Interestingly, the number of transactions Solana records daily is another reason why Gagain is most bullish on SOL. Network activity is known to be another factor that can affect a token’s price.
At the time of writing, SOL is trading at around $95, down over 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Analytics Insight, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Meme coins are in the spotlight due to market changes, and their success in 2024 is uncertain and influenced by various factors.
Positive trends in the broader crypto market, including Bitcoin-related developments and social media hype, could impact meme coins’ performance.
Newer meme coins like Bonk Inu and dogwifhat have seen growth, with their future potentially linked to the overall performance of Solana.
Will Meme Coins Flourish This Year?
Meme coins have been making the headlines as of late due to numerous developments or enhanced price volatility. We decided to ask the most popular AI-based chatbot whether or not they will continue to be successful in 2024.
According to ChatGPT, the answer relies on certain essential factors and involves a high degree of uncertainty. It estimated that a potential bull run of the entire cryptocurrency market would positively impact meme coins, which tend to follow the overall trends. On the other hand, a bearish scenario might have the opposite effect.
ChatGPT added that social media interaction could also play a role in meme coins’ further rally as they thrive on hype and investor sentiment. A favorable regulatory environment, increased adoption, and technological developments were also mentioned.
Last but not least, the chatbot pointed out the influence of key figures. There were multiple examples when the value of a certain meme coin was pumped following comments from famous people. One example is Elon Musk and his frequent interaction with his favorite digital asset – Dogecoin.
The world’s wealthiest person has praised DOGE’s merits in the past, which has resulted in a substantial price appreciation for the token.
Meanwhile, those dealing with meme coins or investors who contemplate doing so should be aware of the risks and conduct proper due diligence before entering the ecosystem. More information can be found in the video below:
Evaluating the Chances of BONK and WIF
Two of the recent sensations in the cryptocurrency sector are undoubtedly the Solana meme coins Bonk Inu (BONK) and dogwifhat (WIF). The former made waves in December, reaching an all-time high price and surpassing the $1.5 billion mark in terms of market capitalization. This major milestone came amid listings from leading cryptocurrency exchanges such as Binance and Coinbase.
WIF also exploded last month, hitting an ATH of over $0.30 a few days before Christmas. It also caught the eye of well-known individuals such as BitMEX’s co-founder Arthur Hayes, who jokingly posted a photo on X wearing a hat (remarking with the asset’s name).
SOL recorded a whopping 1,100% price increase throughout 2023 and kept performing quite well in the new year, trading above the $100 mark. It also climbed the crypto ladder, becoming the fifth-largest asset by market capitalization.
If SOL’s positive performance continues, the meme coins on the network might have better chances of increasing in price.
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Martinez noted in an X (formerly Twitter) post that Solana was breaking out from a bull flag that had developed on the 4-hour chart that he shared. According to him, the crypto token could rally towards the $150 to $165 price range if there was a sustained close above $106. However, that hasn’t been the case as SOL has declined to price levels far from that since then.
#Solana is breaking out from a bull flag that developed on the 4-hour chart. A sustained close above $106 can trigger a 47% rally that pushes $SOL toward the $150 – $165 price range. pic.twitter.com/VmbA9L4QuL
At the moment, SOL looks to be moving with the tide in the broader crypto market, which has been on a decline since the approval of the Spot Bitcoin ETFs. This decline is believed to be a result of Bitcoin being priced in before the approval order came in. As such, traders may be looking to take profits from the flagship crypto token and altcoins like SOL which they may have been invested in.
SOL market cap currently at $39.974 billion. Chart: TradingView.com
Despite this occurrence, the general outlook on SOL looks bullish as there is the possibility that the crypto token could once again hit its all-time high of $260 this year. This looks more feasible, considering that the next bull run has been predicted to begin this year, possibly after the Bitcoin Halving.
In the meantime, SOL’s investors might see the current dip as an opportunity to load up on more of the tokens, especially considering that it is currently trading below the psychological price level of $100.
ETH Could Usher In The Altcoin Season
Crypto analyst Jaydee recently hinted that ETH could usher in the Altcoin season. This is known to be when other crypto tokens begin to outperform Bitcoin. Analyzing the Ethereum to Bitcoin price chart, the analyst noted that the “real altcoin season” begins when the Relative Strength Index (RSI) breaks above the 20 level.
#ETH/BTC – While “Dumb Money” bashes on #Ethereum, “Smart Money” is planning $ETH SEASON right before the REAL ALTSEASON starts!
His theory about Ethereum ushering in the altcoin season is also backed by recent sentiments in the crypto market. All attention looks to be turning to Ethereum in anticipation of a potential approval of the Ethereum Spot ETFs. Market intelligence platform Santiment recently noted how traders are particularly bullish about Ethereum.
📊 As the weekend has kicked off, sentiment toward top cap assets remain at extremely optimistic levels with spotlights on them following the #ETF approvals. Traders are particularly #bullish toward #Ethereum after its market value climbed above $2,700 for the first
With this in mind, ETH could begin to post significant gains against Bitcoin in the coming weeks, setting the tone for other altcoins. ETH already showed huge strength post the Spot Bitcoin ETF approval as it rallied to $2,700, the first time it has attained this level since May 2022.
Featured image from iStock
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
The crypto market has recently been a roller coaster, especially in H2 2023. Solana, a high-throughput blockchain, emerged as one of the best performers in the top 10 coins by market cap.
In Q4 2023, Solana soared, reaching highs of around $125 before cooling off to spot rates. However, some think the uptrend is over, with SOL edging lower under increasing liquidation pressure.
The Solana Bubble Has Popped, Is This True?
Lido.eth, while taking to X on January 7, said Solana is a “Q4 2023 bubble” that has “already popped.” The analyst added that this formation doesn’t mean SOL is “worthless or won’t be used anymore.” However, based on Lido.eth’s assessment, the Solana “growth story has ended,” calling serious questions into the project’s immediate potential.
In H2 2023, Solana grew on renewed interest in the high-performance blockchain. Propelled by rising activity in decentralized finance (DeFi) and non-fungible token (NFT) scenes, SOL reversed losses recorded in November 2022.
Moreover, as the crypto community tracked the Securities and Exchange Commission (SEC) and whether they would approve the first spot Bitcoin ETF, altcoins, including SOL, became major beneficiaries.
Arthur Hayes, the founder of the cryptocurrency exchange BitMEX, also believes that the Solana rally is over. In December 2023, Hayes tweeted that he had rotated funds from Solana to Ethereum, citing “divine inspiration.” The BitMEX co-founder also said ETH may rally to reach $5,000 but without giving a specific timeline as to when this lofty target will be reached.
SOL Remains In An Uptrend, Back To $125?
Despite these bearish sentiments, some Solana supporters believe the platform has a “bright future.” They point to the upcoming launch of the Firedancer client.
This validator client will make the network more robust and increase efficiency. It will aim to decentralize Solana further, making it more reliant by eliminating weak points resulting from client concentration. From a price action perspective, continuing the overall crypto uptrend could also buoy SOL prices in 2024.
Looking at the Solana price chart, the uptrend remains, but sellers dominate, at least in the short term. To quantify, SOL is down 30% from the December 2023 peak when it topped at around $125.
With prices trending inside the bear bar of January 3, sellers have the upper hand from an effort-versus-result perspective. For the uptrend to resume, there must be a clear, high-volume close above $100. If not, steep losses below $85 might trigger a sell-off that could price toward $60 or worse.
Feature image from Canva, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Solana is moving lower from the $115 resistance. SOL price is showing a few bearish signs and might decline sharply toward the $68 support.
SOL price started a fresh decline from the $115 resistance against the US Dollar.
The price is now trading below $100 and the 100 simple moving average (4 hours).
There is a key bearish trend line forming with resistance near $92 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
The pair could continue to move down toward the $80 support or even $68.
Solana Price Starts Downside Correction
After a steady increase, Solana bulls struggled to clear the $115 resistance. SOL price formed a short-term top and started a fresh decline below the $105 support.
There was a steady decline below the $100 pivot level. The bears pushed the price below the 50% Fib retracement level of the upward move from the $71 swing low to the $108 high. The price is now showing a few bearish signs from the $115 resistance zone, like Bitcoin and Ethereum.
SOL is now trading below $95 and the 100 simple moving average (4 hours). There is also a key bearish trend line forming with resistance near $92 on the 4-hour chart of the SOL/USD pair.
If there is a fresh increase, immediate resistance is near the $92 level and the trend line. The first major resistance is near the $100 level or the 100 simple moving average (4 hours). The main resistance is now near $105. A successful close above the $105 resistance could set the pace for another major rally. The next key resistance is near $115. Any more gains might send the price toward the $125 level.
More Losses in SOL?
If SOL fails to rally above the $92 resistance, it could continue to move down. Initial support on the downside is near the $80 level.
The first major support is near the $72 level, below which the price could test $68. If there is a close below the $68 support, the price could decline toward the $50 support in the near term.
Technical Indicators
4-Hours MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $80, and $68.
Major Resistance Levels – $92, $100, and $105.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Solana (SOL) has been struggling to strongly hold above the $110 mark over the past week. The recent price drop has resulted in its capitulation to BNB again.
SOL declined by 3.8% in the past 24 hours and is trading at $109.5 at the time of writing. The asset’s market cap fell from around $50 billion to $47 billion over the past day — making it the fifth-largest cryptocurrency.
SOL price, open interest, funding rate, social volume and RSI – Jan. 3 | Source: Santiment
Solana’s 24-hour training volume, however, recorded a 16% surge, reaching $3.3 billion.
Per a recent report, the Solana network surpassed Ethereum’s weekly stablecoin trading volume. Solana’s seven-day stablecoin volume reached $103 billion while Ethereum’s number was hovering around $90 billion.
According to data provided by Santiment, the social activity around the SOL token surged by 76% over the past day after consistently declining since Dec. 24.
On the other hand, the total open interest (OI) in Solana dived $1.3 billion to $1.26 billion over the past 24 hours, per Santiment. The declining OI could suggest that roughly $40 million worth of SOL perpetual contracts have been either closed or liquidated at this price point.
According to Santiment data, the total funding rates aggregated by SOL currently stands at 0.08%. This indicator shows that long-position holders are dominating the short-position holders at this price point.
Moreover, the Solana Relative Strength Index (RSI) has been constantly rising since Dec. 30. Per Santiment, SOL’s RSI just reached a seven-day-high of 77.
While the majority of traders are betting on long positions, the RSI indicator suggests high price volatility.
According to a report on Jan. 1, Solana’s decentralized exchange (DEX) volume surpassed the $28 billion mark in December. The rally was triggered by a series of airdrops and meme coin mania, which also helped the SOL token reach $120 in late December.
Solana (SOL) showed the best performance among the top 10 digital assets by capitalization. What caused this rapid growth following a significant decline?
In 2023, Solana showcased exceptional success, in stark contrast to Ethereum (ETH). While SOL surged over 1000%, ETH saw only a 90% increase.
To better understand Solana’s ecosystem scale and recovery pace, let’s examine crucial blockchain metrics from the time of the FTX crash on Nov. 11, 2022.
FTX bankruptcy
When the cryptocurrency exchange filed for bankruptcy on Nov. 11 last year, Solana’s metrics had already significantly declined from their peak values.
For instance, SOL’s price dropped from $62 to $17, and the daily trading volume decreased from $6.7 billion (108 million SOL) to $2.2 billion (130 million SOL).
Source: CoinMarketCap
The exit of a major investor and the risk of coin sales triggered Solana’s fall, leading crypto community members to predict its imminent demise.
Solana’s co-founder and CEO, Anatoly Yakovenko, acknowledged that the significant decline in SOL resulting from the FTX collapse was a “bitter pill to swallow.” Still, these unpleasant moments paled compared to the damage caused to ecosystem projects.
About 20% of Solana-based projects received investment from the crypto exchange FTX or its subsidiary Alameda Research, and only 5% of startups in the ecosystem held funds on this trading platform. Yakovenko expressed sympathy for the project creators who worked to raise capital and trusted FTX as the custodian of funds.
Project rise
Despite the negative forecasts, Solana survived and began its recovery. Experts attributed the project’s “survivability” to the team’s use of stress testing to fix bugs.
Solana’s active growth occurred during the publication of the court decision in the FTX case. The founder of the crypto exchange, Sam Bankman-Fried, was found guilty of all charges.
Now freed from a powerful partner’s pressure, Solana’s fate seems clearer, enhancing its investment appeal. Crypto industry representatives have started discussing Solana’s potential to lead the next bull market, evident in the large volume of open long positions, showing investors’ confidence in its positive trajectory.
Development of Solana and its impact on the ecosystem
Despite pessimistic forecasts and a general decline in network activity following FTX’s bankruptcy, the Solana developers remained proactive. The blockchain has undergone several significant technical updates and innovations throughout the past year. Since the summer of 2023, Solana has introduced new defi services, including lending platforms, LSD protocols, and decentralized exchanges (DEX). The developers aim to create a new generation of platforms with “healthy” tokenomics and high-quality UI/UX.
The validators’ migration to client version 1.16 at the end of September 2023 optimized memory usage, expanded support for zero-knowledge proofs (ZKP), and integrated confidential transfers with the new token standard. The update also increased the stability of the network and reduced the hardware requirements for validators. Version 1.17 is expected to add even more ZKP integration capabilities.
Another major improvement was the introduction of State Compression in April 2023. The solution makes storing data outside the main network cheaper by using on-chain hashes to prove its authenticity.
Meme coins powered by Solana
The end of the year witnessed notable excitement surrounding Solana-based memecoins, with one of the standout tokens being Bonk. Bonk, a meme coin operating on the Solana blockchain and depicting a Shiba Inu dog, resembles the largest meme cryptocurrencies such as Dogecoin (DOGE) and Shiba Inu (SHIB).
Introduced early in January of the same year, Bonk initially sparked short-term excitement, followed by a systematic price decrease until the end of October, after which it began to experience rapid growth. The surge in the coin’s price might have been triggered by the increase in the Solana blockchain token’s value, generating interest in assets within this network, including BONK.
The escalating demand for the rising token value resulted in a tenfold surge in Saga smartphone sales by Solana developers. Individuals owning the device are eligible for a complimentary distribution of BONK tokens, whose quantity, at the current rate, covers the smartphone’s cost. The company restricted sales to one device per person.
What lies ahead for Solana
VanEck analysts published a report presenting several forecasts for the price of SOL by 2030. The pessimistic scenario projects a coin price of $9.81, while the most optimistic scenario reaches $3211.28.
Experts suggest Solana could potentially be the first blockchain capable of accommodating applications with over 100 million users. However, VanEck believes Solana’s monetization will only reach about 20% of Ethereum’s due to “fundamental differences in the philosophies of the communities of the two projects.” This may result in less than half of Ethereum’s market share.
Experts also anticipate decentralized exchanges’ market share will reach an all-time high as high-performance networks like Solana enhance user trading experiences. They predict the Solana blockchain will rank among the top three in market capitalization, TVL, and active users.
While the initial forecast regarding the token price may appear challenging to achieve given current token values, the second forecast seems reasonably realistic. In January, SOL secured its place in the top five cryptocurrencies by market capitalization, surpassing Ripple (XRP) and BNB.
In December, decentralized exchanges on the Solana blockchain collectively achieved $28 billion in total volume.
The Solana decentralized exchange (DEX) ecosystem, comprising various platforms, contributed to the blockchain’s robust performance in the past month.
Raydium, the leading DEX on Solana, reported a weekly decline of 42.6%, with a 24-hour volume of $224.1 million and a seven-day volume of $2.4 billion. Despite a dip in weekly performance, Raydium maintained its dominance, representing 41.1% of the total cumulative volume, reaching $53.6 billion.
Orca and Lifinity secured the second and third positions, with weekly dips of 19.7% and 11.7%, respectively. Orca recorded a 24-hour volume of $209 million and a seven-day volume of $2.6 billion, while Lifinity reported a 24-hour volume of $47.1 million and a seven-day volume of $824.2 million.
With a positive weekly change of 17.6%, Mango Markets showcased a unique trend, boasting a 24-hour volume of $9.5 million and a seven-day volume of $332.7 million. Drift, OpenBook, Crema Finance, Saber, Penguin, Aldrin, Saros, Serum, and Synthetify also played roles in Solana’s DEX monthly rise.
Solana rallied above the $100 and $110 levels. SOL price is now correcting gains, but the bulls might remain active near the $100 level.
SOL price started a fresh rally above the $100 resistance against the US Dollar.
The price is now trading above $100 and the 100 simple moving average (4 hours).
There is a key bullish trend line forming with support near $102 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
The pair could start a fresh rally unless there is a close below the $100 support.
Solana Price Remains In Uptrend
In the past few days, Solana saw a major upward move above the $90 and $100 levels, unlike Bitcoin and Ethereum. SOL even rallied above the $120 level.
A new multi-week high was formed near $126.13 and the price is now correcting gains. There was a move below the $115 and $112 levels. The price declined below the 23.6% Fib retracement level of the upward move from the $67.25 swing low to the $126.13 high.
SOL is now trading above $100 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support near $102 on the 4-hour chart of the SOL/USD pair.
On the upside, immediate resistance is near the $112 level. The first major resistance is near the $120 level. The main resistance is now near $125. A successful close above the $125 resistance could set the pace for another major rally. The next key resistance is near $132. Any more gains might send the price toward the $145 level.
More Losses in SOL?
If SOL fails to rally above the $120 resistance, it could continue to move down. Initial support on the downside is near the $100 level.
The first major support is near the $90 level or the 61.8% Fib retracement level of the upward move from the $67.25 swing low to the $126.13 high, below which the price could test $80. If there is a close below the $80 support, the price could decline toward the $68 support in the near term.
Technical Indicators
4-Hours MACD – The MACD for SOL/USD is losing pace in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $100, and $92.
Major Resistance Levels – $115, $120, and $125.
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The analyst says Solana is stuck between support at $110 and resistance at $120 as it trades in a rangebound state.
In his latest YouTube video on Dec. 26, the analyst behind the popular Cilinix Crypto channel shared his thoughts on recent price action in the Solana (SOL) market. He believes the altcoin remains fundamentally strong, but traders should remain patient amid questionable year-end trading conditions.
Speaking to his viewers, the analyst said Solana is currently rangebound between support at $110 and resistance around $120. Yesterday, Solana briefly broke above $120 but failed to hold those gains. According to the analyst, this kind of fake out is not uncommon, given lower liquidity and irregular trading activity around the holidays.
A fake out does not necessarily mean that we’re going to crash. […] Solana right now is still doing great.
Cillinix Crypto
The analyst also pointed to healthy trading volumes and open interest in Solana futures contracts as signs of ongoing strength. Looking ahead, he thinks Solana will likely see a bullish breakout above $120 or a bearish breakdown below $110 soon. He believes a drop towards $95 is possible if Bitcoin (BTC) fails to hold above $42,000. However, he says either scenario fits a longer-term bullish trajectory for Solana.
“Fundamentally, Solana is still very bullish,” he concluded, advising traders to wait patiently for a definitive breakout in either direction.
Despite recent volatility, he remains optimistic about Solana overall, citing strong on-chain activity and developer participation. But he cautions traders to consider reducing risk ahead of potential near-term downside before a longer-term move higher.
Amid Solana’s (SOL) recent bullish momentum, the asset’s market cap reached a 21-month-high.
SOL is up by 1.5% in the past 24 hours and is trading at $117 at the time of writing. The asset’s total market capitalization currently stands at roughly $50 billion — briefly touching $53.4 billion on Dec. 26.
SOL price, social volume, open interest, Binance funding rate and RSI – Dec. 26 | Source: Santiment
Solana’s 24-hour trading volume also increased by 22%, surpassing the $6 billion mark.
According to data provided by the market intelligence platform Santiment, the total open interest (OI) in SOL has witnessed a $2 million decline in the past 24 hours — currently standing at $1.435 billion.
Despite the slight decline in Solana’s total OI, Santiment data shows that the long-position holders are increasing.
SOL’s Binance funding rate rose from 0.01% to 0.06% over the past day, showing a slightly bigger dominance of long futures contracts, per the market intelligence platform.
On the other hand, Solana’s social volume declined by 19% over the last 24 hours. The decline comes as the broader crypto market sees a correction.
Solana’s Relative Strength Index (RSI) also rose with the recent price surge. According to Santiment, the asset’s RSI currently stands at 87, suggesting the possibility of a price decline since an incoming selling pressure could be triggered.
If SOL’s RSI remains below the 65 mark, analysts expect a potential price surge.
On Dec. 25, the number of Solana daily active addresses surpassed 15.6 million unique wallets, recording a 50% rise since November.
Digital asset investment products resumed inflows after breaking the 11-week streak of positive cash flows. According to the findings by CoinShares’ Head of Research, James Butterfill, the net inflows totaled $103 million over the last week.
Bitcoin investment products, as usual, attracted the highest capital inflow. The digital asset manager revealed a net inflow of $87.6 million during the period. Short-bitcoin also experienced a minor inflow amounting to $0.3 million.
Ethereum investment products saw positive activity, recording a net inflow of $7.9 million, while Solana investment products attracted a net influx of $6 million.
Among the altcoins, Avalanche and Litecoin were the only ones recording outflows of $2.6 million and $0.4 million, respectively, over the past week.
In terms of geographical distribution, the frontrunners in investment were Germany, Canada, and the USA, with money flowing in at $41.6 million, $25.8 million, and $20.4 million, respectively.
Switzerland, Brazil, Australia, and France followed suit with inflows of $15 million, $8 million, $1.2 million, and $0.3 million, respectively. On the flip side, Sweden experienced outflows amounting to $8.7 million.
The latest estimates indicate a mild recovery from the previous CoinShares report, which revealed the end of an 11-week streak of positive cash flows for digital asset investment products, concluding with withdrawals totaling $16 million.
During that period, Bitcoin witnessed the most significant impact, with outflows of $33 million. While most altcoins managed to buck the trend and post inflows, products focused on Ethereum and Avalanche experienced modest declines.
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According to data provided by the market intelligence platform Santiment, Solana’s Relative Strength Index (RSI) rose from 77 to 79 in the past 24 hours. When the RSI increases, it usually indicates an incoming price decline and selling pressure.
SOL price, RSI, open interest and Binance funding rate – Dec. 25 | Source: Santiment
For SOL to stay bullish, the RSI would need to cool down to the 60 mark before any further price surges.
SOL is down by 1.2% in the past 24 hours and is trading at $113 at the time of writing. The asset’s market cap is standing at $48.3 billion, strongly holding the fourth spot after Bitcoin (BTC), Ethereum (ETH) and USDT.
Data shows a slight downward momentum in Solana’s daily trading volume, currently hovering around the $4.8 billion mark.
As the possibility of a further price decline surfaces, a whale has transferred 199,999 SOL tokens to the Binance crypto exchange.
Per Whale Alert, the transaction is worth roughly $23 million and further movements haven’t been detected yet.
The movements come after Solana hit a 21-month-high of $117.3 on Dec. 24 after recording constant inclines over the past month. It’s important to note that SOL’s price registered a 94% rally in the past 30 days.
Data from Santiment also shows a 5% rise in Solana’s total open interest (OI) in the past 24 hours — rising from $1.36 billion to $1.42 billion.
According to the market intelligence platform, long-position SOL holders are slightly dominating the asset’s total OI. Per Santiment, Solana’s Binance funding rate currently stands at 0.012%.
