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Has Solana chosen a recovery roadmap after SOL registers >18% uptick

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  • Solana started the new year on a high note after the recently-ended year finished in sour circumstances
  • The uptick might not be prolonged due to indications from the technical side 

Ending 2022 in a heart-rending state might not have been the best for Solana [SOL] but a superstar start to the new year might have filled in for the backtrack. This was because SOL surged by 18.08% in the last 24 hours.

Although certain corners called it quits with the blockchain recently, the rise in value could mean a lifeline for the cryptocurrency holders. 


Read Solana’s [SOL] Price Prediction 2023-2024


According to CoinMarketCap, SOL wasn’t the only one involved in an increase. Its 24-hour trading volume followed suit, recording a 274.74% rise. This implied a substantial increase in transactions using the Solana network. 

The increased participation was further proven by Step Data Insights. Based on data from the portfolio dashboard platform, Solana increased per active addresses. Polygon [MATIC], Ethereum [ETH], and Cardano [ADA] also jumped on the same bandwagon.

How long before the drawback?

Before the resurgence above $11, SOL traded as low as $8 on 29 December 2022. However, Ethereum’s co-founder, Vitalik Buterin, encouraged the community to give Solana a chance. 

Still, the blockchain sustained having the highest number of transactions. The price rise might mean SOL is down and out but how long can it sustain the greens?

Details from the daily chart showed that SOL had improved per its Relative Strength Index (RSI). At press time, the RSI had deserted its previous hold in the oversold region. Rising to 48.49, it indicated that SOL had built up an impressive buying momentum.

Nevertheless, there was a chance that the SOL uptick might end in dismay, according to the signs from the Exponential Moving Average (EMA). At press time, the 20 EMA (blue)  was below the 50 EMA (green). This trend favored the bears. Hence, SOL might not hold on for long before a drawback.

Solana price action

Source: TradingView

The deal is to get back up

Despite the challenges faced, a couple of projects still opted to host their wallets on the Solana blockchain. For Nick Garfield, founder of Clockwork, a smart contracts automation engine, Solana wallets were still far ahead of others. He tweeted, 

“Solana wallets are already 10x better than anywhere else, and the teams are innovating significantly faster.”


How many SOLs can you get for $1?


However, on-chain data showed that Solana’s market cap could still find it hard to surpass those that have overtaken it. At the time of writing, Santiment data showed that the market cap was $4.35 billion, an increase from the fall on the last day of 2022. 

Solana market cap and social dominance

Source: Santiment

On other fronts, SOL’s social dominance boosted to 4.496%. An explanation of this metric pointed towards increased discussion around the asset.

Meanwhile, comments from the Solana community revealed that it was not ready to give up irrespective of the difficulties. Famous Solana faithful believe that 2023 would be a great year for the troubled blockchain.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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