Solana Price is Up 87% in a Month – Buy Before Recovery Takes the Price Past $30 Soon?
The Solana price explosive move since late December has seen investors rush back to the project in the wake of the FTX implosion. Recovery began with a final dip to $8.05, riding on the momentum created by BONK, the first meme token on the Solana blockchain.
Demand for SOL increased exponentially with the meme coin hype, leaving a positive ripple effect on Solana price, which has rallied 87% in just 30 days. However, the smart contracts token paused the uptrend at $24.00, with bulls seeking refuge above $20.00 since Friday.
Why The Solana Price Rally Needs to Tag $30 Soon?
Solana price has been holding above $20.00 for five days now, as bulls plan the next breakout to $30.00 and $40.00, respectively. While voluminous trading volumes backed the explosive price action, the Money Flow Index (MFI) shows that more money is leaving Solana markets than the funds flowing in.
The MFI is a momentum indicator like the Relative Strength Index (RSI), but it utilizes volume rather than price. From the 12-hour timeframe chart, we see the MFI sliding below the sharply rising trend line. This shows overhead pressure could push down Solana price, leading to a retracement below $20.00, unless bulls push for the resumption of the uptrend as soon as possible.
Therefore, buyers who may have been sidelined by the rally to $24.00 may want to consider making a comeback to provide Solana price with enough momentum to push above that resistance.
The Moving Average Convergence Divergence (MACD) indicator is much closer to confirming a sell signal in the same time frame. Notice the MACD (line in blue) crossing below the signal line (in red). Furthermore, declines may intensify as the MACD drops to the mean line, and possibly into the negative region.
Evaluating The Bullish Outlook in Solana Price
Solana price sits on top of robust support between $20.00 and $22,00. Moreover, declines below this area could be arrested by the next buyer congestion at $19.50, as highlighted by the 200-day EMA (in purple).
For the first time since August 2021, the 50-day EMA (in red) has crossed above the 100-day EMA). Although this is not a typical death cross pattern that occurs when the 50-day EMA crossed above the 100-day EMA, it upholds the bullish outlook and affirms the possibility for Solana price to close the gap to $30.00. SOL exploded by a whopping 584% at the time as bulls rode the 2021 bull run market.
Solana price upholds the bullish outlook in the daily timeframe by holding above the 100-day EMA (in blue) at $19.51 and the 50-day EMA (in red) at $16.51. Furthermore, the MACD is still slopping to the upside while nurturing a buy signal sent at the beginning of the year.
A break is required above the immediate falling trend line resistance, otherwise, Solana price might ease into a retracement ahead of the weekend. With the MFI confirming a negative fund flow in Solana markets, a trend correction could be the most likely outcome.
That said, in crypto almost impossible does not mean never. Hence, it would be prudent for investors to watch SOL’s performance keenly in the coming few days to ascertain the direction the price may take.
Altcoins To Consider for Quicker Returns
Investors are waiting to see if SOL might close the gap to $30.00 by blasting through the hurdle at $24.00. However, investors may take advantage of far more affordable altcoins in their presales with the potential of locking in faster gains by the time they are listed on exchanges. These tokens offer the best long-term opportunity for investors to be early adopters.
Meta Masters Guild (MEMAG)
Investors with an interest in play-to-earn (P2E) crypto gaming platforms may direct their attention to Meta Masters Guild, the first mobile-focused web3 gaming guild. In this new ecosystem, users are rewarded for playing the games they enjoy in addition to a wide scope of contributions they can make to generate more revenue.
Meta Masters Guild’s (MMG) model is simple – the team calls it play-and-earn because almost all barriers to entry have been eliminated. Rewards in the MMG ecosystem are earned in a currency referred to as Gems. After receiving Gems, users can convert to MEMAG and stake the tokens for more rewards. Furthermore, Gems can be used to buy NFTs and other in-game items.