Solana Price Forecast After Recent Surge – What Do Market Signals Indicate?

The price of Solana has decreased by 4.5% over the last 24 hours, returning to $104.89 after a robust weekend for both the altcoin and the broader cryptocurrency market.

SOL has experienced an increase of 8% over the past week and a rise of 12.5% in the last 30 days, with the coin also boasting an impressive 400% gain over the past year.

Considering the significant rally SOL has had in recent months, it can be argued based on indicators that the coin may be poised for further correction.

However, analysts anticipate that the cryptocurrency market will become increasingly optimistic due to rising Bitcoin ETF inflows, suggesting that SOL could achieve additional substantial gains following a brief correction.

Solana Price Prediction Following Recent Rally – What Do Market Indicators Suggest?

Examining SOL’s chart, it appears that the coin may decline further in the short term, at least according to its indicators.

Notably, its relative strength index (purple) has dropped from approximately 65 to 55 in the past day, indicating a distinct loss of momentum.

Source: TradingView

That said, its 30-day moving average (yellow) is in a more mixed state, with the average still showing a modest rise above the 200-day average (blue).

However, as SOL’s current price approaches the 30-day average, both averages could potentially decline in the next week or two.

It is likely that it won’t drop significantly, as SOL’s support level (green) has withstood major declines since December, indicating that the current correction should not be overly severe.

The reason for SOL’s gains over the weekend – which have not been significantly impacted by today’s drop – is that Bitcoin ETF volumes have significantly supported the market and trader optimism, positively affecting most altcoins as well.

688,765 #SOL (73,965,690 USD) transferred from unknown wallet to unknown wallethttps://t.co/lMRmxkMfM0

— Whale Alert (@whale_alert) February 9, 2024

Despite SOL’s strong outlook in the medium and long term, traders should remain cautious about the potential for another outage.

After nearly a year of uninterrupted service, the Solana blockchain experienced an outage lasting around five hours last week, raising concerns about whether it has fully recovered from the issues faced in 2022.

Currently, it appears that few traders are particularly concerned about the recent downtime; however, if a similar incident occurs within a short timeframe, the price of Solana could suffer significantly.

For now, increasing bullish sentiment and rising usage of Solana are likely to drive SOL up to $150 by spring.

Small-Cap High-Potential Alts

Due to SOL’s aggressive rise last year, there is a possibility that it may not experience the same level of growth this year, instead opting for more stable increases.

For traders seeking quicker-than-average returns, the inclination may be to explore smaller-cap altcoins, particularly those that could see significant rises upon listing on new exchanges.

Currently, a leading candidate for this is Sponge (SPONGE), an ERC-20 cryptocurrency that launched its second version of the token last week.

Referred to as SPONGE V2, this new version replaces the previous iteration of the popular meme coin, which initially listed – and surged – on exchanges in April 2023.

SPONGE V2 is presently available on Uniswap, and the token’s intriguing new features will likely lead to listings on additional exchanges soon.

For instance, the new version of the token includes an enhanced staking model, offering a variable yield that can increase significantly based on the number of stakers and their stakes.

If you missed out on $SPONGE V1, don’t miss out on #SpongeV2!

Time to stake your $SPONGE! #MemeCoin #Web3 #Altcoins #BullMarket #Bullish #Trade pic.twitter.com/oNwatR7ihw

— $SPONGE (@spongeoneth) February 10, 2024

Additionally, SPONGE V2 serves as the native token for an upcoming P2E racing game set in the Sponge universe, providing the coin with more utility than many other new meme tokens.

In this forthcoming game, players will compete to achieve the highest rank on a global leaderboard, with top performers receiving rewards in the form of SPONGE tokens.

Investors can already acquire Sponge V2 by visiting Uniswap or the official Sponge website.

Source: DEXTools/TradingView

Notably, the token has appreciated by 86% since its listing a week ago, and further listings are expected to drive it even higher in the coming weeks.

Buy Sponge V2 Here

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