Solana Price Prediction as Daily Trading Volume Pumps Past $2 Billion – Are Whales Buying?
The Solana price has dropped by 4.5% in the past 24 hours, slipping to $101.82 as the crypto market suffers a 1.5% reduction today.
Today’s slide marks a bad week for SOL, which is now down by 8% in a week and by 4% in a fortnight, although it remains up by 17.5% in the last 30 days.
And with its volume sitting above $2 billion, it’s clear there’s still plenty of demand for the token, even if some holders are selling right now.
This means that, after its current correction, it should return to growth soon enough, potentially reaching new highs for the year in a few weeks.
Solana Price Prediction as Daily Trading Volume Pumps Past $2 Billion – Are Whales Buying?
Based on an examination of its indicators, it would seem that SOL is ready to fall further before it can correct itself upwards again.
Its relative strength index (purple) has fallen below 50 in recent days, and while it has halted a drop below 45, this may only be temporary.
Indeed, SOL’s 30-day moving average (yellow) has flattened out after a period of sustained growth, with the average likely to begin falling towards the 200-day (blue).
The question as to whether it fall below the 200-day, this will depend on whether SOL’s support level (green) can resist a clear drop below $100.
If it can’t, we could see SOL pick up additional losses, possibly sinking to $95 or a bit lower before positivity returns.
Such a possibility may not be likely, however, since the alt’s trading volume remains healthy, at around $2.2 billion today.
Some of this volume is coming from selling, with recent days seeing big SOL transfers to exchanges.
🚨 96,000 #SOL (10,001,872 USD) transferred from unknown wallet to #Coinbasehttps://t.co/pzz6GHJW0n
— Whale Alert (@whale_alert) February 22, 2024
However, the fact that volumes remain high is a clear sign of plenty of demand for discounted SOL, which will rebound sooner or later.
It has fallen only as part of a market-wide correction, with the exuberance of previous weeks – fuelled by Bitcoin ETF volumes – giving way to profit-taking.
And the factors which had driven SOL more than most other altcoins are still there, with Solana remaining the fourth-biggest layer-one platform by TVL.
NFT trading and meme coins have fuelled much of its recent growth, and its transactions remaining strong, the Solana price will recover soon enough.
It could reach $150 by the end of the spring, before rising to $200 in later months of the year.
Newer Coins Bring Strong Rally Potential
While SOL plays out its current correction, some traders may take the opportunity to invest some of their portfolios in small-cap alts, of the kind that can rally big when they list on new exchanges.
One coin with plenty of potential for this is Sponge (SPONGE), an ERC-20 cryptocurrency that recently launched the second and improved version of its token.
It has risen by just over 150% since listing on Uniswap earlier in the month, with the coin doing a good job of protecting its initial rally.
SPONGE V2 provides the token with a revamped staking model, which comes with a minimum yield of 40% APY.
This yield rises depending on how many stakers are involved and how many tokens, with the rate recently moving into triple figures.
And it seems that its healthy rates of return have been influential in ensuring long-term holding and keeping SPONGE V2’s price stable.
Other features also seem ready to propel SPONGE towards higher levels, with the coin also being the native token of an upcoming P2E racing game.
Launching in the next few weeks, more concrete details beyond the game’s genre haven’t yet emerged, but it will invite players to compete against each other to earn the most rewards (in SPONGE).
📣 Attention, #SPONGERS!
Here is some important information to remember about $SPONGE V2!$SPONGE V1 has officially been discontinued, and V2 has been launched on #Polygon! 🔥
Learn more about the token details below 👇https://t.co/TCdxgXx40w
🧵1/3 pic.twitter.com/YZzXOlKmHY
— $SPONGE (@spongeoneth) February 6, 2024
This provides another reason for holding SPONGE, which will also see demand rise when it lists on additional trading platforms in the coming weeks.
Traders can currently acquire the meme coin via either Uniswap or the official Sponge website.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
