Solana Experiences 3% Rise In 24 Hours – Is A Bullish Trend Imminent?

The past week has been bearish for Solana, with the token experiencing a major price correction. However, this was also experienced across the crypto market, with several coins attempting to break key levels to establish bullish momentum.

Bitcoin, for example, has experienced a price dip of over 8% in the past four days, dropping from $30,600 to below $27,000 as it struggles to surpass the $30,000 resistance level. With buying pressure mounting, Solana has shown signs of resurgence, as evidenced by the price increase in the past 24 hours.

The token has recovered by 3% during this period, and it is not certain if this indicates a trend reversal into a bullish market. The recent development in the Solana ecosystem shows that the coin could make impressive gains in the coming days.

Solana Boosted By Helium Migration And Grayscale Adoption

Crypto connectivity project Helium migrated to the Solana blockchain on Tuesday. Developers initiated a 24-hour process to take the Helium blockchain offline and recreate its key metrics on Solana.

Helium’s smart contracts were unusable during this period, and the network was restarted on Wednesday. According to Helium, the migration to Solana aimed to make Helium faster and cheaper.

Previously, Helium had its own custom layer-1 blockchain, which lacked the broad apparel of Solana and Ethereum. Moving to Solana offers Helium a wider audience and a more stable platform, despite the well-publicized outages in Solana’s history. Helium also believes that migrating to Solana also provided Helium with access to a larger pool of developers familiar with Solana’s programming language.

In addition, Grayscale Investments, the world’s largest digital currency asset manager, revealed this week that the Grayscale Solana Trust had commenced trading in OTC Markets with the symbol GSOL.

Retail investors will be able to buy and sell shares through their investment accounts. The trust is designed to track the price of Solana, so investors can gain exposure to the token without owning it directly. At the time of writing, the Solana Trust has $2.9 million in SOL and brings Grayscale’s total number of digital currency investment products quoted on OTC Markets to 16.

Solana Price Prediction

SOL has recovered today but is still down about 8.7% in the past week. The asset has risen above the $21 price level and is struggling with the bears. Solana is trading a bullish signal above its 50-day Simple Moving Average (SMA). This provides hope that the token could enter a bullish run long-term.

SOL’s Relative Strength Index (RSI) is 48.86, confirming the slightly bearish trend. The indicator is neutral, reflecting traders’ indecision in today’s market. Looking at the current trend, Solana’s support levels are $20.50 and $20. Also, the resistance levels are $23.20, $23.50, and $24.20. Solana will likely hold within the $21 mark in the short term, and if there’s a bullish momentum, the token could hit $23 before the end of April.

Featured Image from iStock.com, charts from TradingView

Publication date

04/23/2023 - 10:39

Author

Olowoporoku Adeniyi

Article source

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