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Solana Price Surge Attracts Investors, What’s Driving It?

In the first week of 2023, the price of Solana (SOL) soared in value, going from $9.7 to $17.50. As a result, trade volume in SOL has increased, and Wallet Investor predicts that SOL will hit new highs in 2023.

The current Solana price, as reported by CoinMarketCap, is $15.87. The value has decreased by 0.50% over the past 24 hours. There are currently 370,184,196 SOL in circulation, which gives it a market cap of $5,915,802,434 and a position in the top 12 of CoinMarketCap’s rankings.

SOL Dominates The Market

In the weeks following the FTX crash, the price of SOL had taken numerous beatings, eventually falling to single-digit values for the first time in two years. However, Solana beat the market by coming back from the dead and seeing a price hike again. 

With daily volume near its average of $6 million, the price of SOL has settled at the new rally’s top boundaries. This indication is bullish, as buying and selling have not yet grown in a bearish direction. As a result of these considerations, the next bullish goal is the $20 level, as it touched $17.50, representing a 30% increase from the current price.

The historical correlation between an overbought RSI and buyer exhaustion has led many traditional investors to view an overbought RSI as a probable sell signal. So, to get the RSI back below 69, the price of SOL may go through a correction or a sideways consolidation phase.

Messari Outlines Solana’s Growth Factors

A recent tweet from Vitalik Buterin and the enthusiasm in the protocol’s meme coin Bonk (BONK) are just two of the many variables that have contributed to the rise of SOL, according to crypto analytics service Messari. And when more individuals buy than sell, the value of digital currency increases.

Despite its rising transaction volume, SOL’s declining gas fees were cited by Messari’s senior analyst Tom Dunleavy as one of the two most likely fundamentals fueling the coin’s continuous growth.

According to the update released by Messari, the protocol no longer appears to be facing the outages it had been experiencing.

The price of Solana’s native coin dropped last year due to a couple of factors, including multiple network disruptions and the harsh crypto winter. The downtime was bad enough to get Cardano’s founder, the outspoken Charles Hoskinson, to criticize the protocol publicly.

Featured Image From Changelly, Charts From TradingView.com

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