Solana price has bucked the trend recently. While other digital currencies like Bitcoin, Ethereum, and Ripple have dropped by double digits, it has risen instead. It is trading at $16.50, which is 40% above where it was 5 days ago. It has risen by more than 800% this year, bringing its total market cap to more than $4.7 billion, making it the 18th-biggest cryptocurrency in the world.
What happened: The past few days have been relatively difficult for cryptocurrencies. At some point, the price of Bitcoin fell by more than 20% in a matter of hours. However, the Solana price has risen sharply as investors reacted to the increasing adaption for the network.
As I wrote last month, many developers were turning to Solana because of its proof-of-stake (PoS) capabilities and the fact that it is faster, secure, and censorship-resistant. It is also relatively cheaper than ETH, with the average cost of a transaction being $0.0004. The total number of transactions in the network has risen to more than $12.3 billion.
The Solana price has jumped this week after it launched The Raydium Protocol, which provides on-chain liquidity to a central limit order book. In the announcement, the developers said:
“meaning that Raydium’s users and liquidity pools have access to the order flow and liquidity of the entire Serum ecosystem, and vice versa.”
Solana price prediction
On the four-hour chart, we see that the Solana price rose to an all-time high of $18.20 this week. This happened shortly after the price rose above a bullish flag pattern. Today, it remains above the 25-day and 15-day weighted moving averages. Also, the momentum seems to be continuing.
Therefore, in the near term, I suspect that the price will continue rising as bulls focus on the resistance at $20, which is about 22% above the current level. However, a drop below $15 will invalidate this trend.
SOL price chart
Awarded and global FX/CFD broker. Well-regulated in multiple jurisdictions. Offers great spreads and liquidity for FX, Indices, and Commodities trading.
Cryptocurrency exchange with over 150 coins. As of Jan 18, Binance was the world's largest cryptocurrency exchange per volume.