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Simon Chandler
Simon Chandler
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Solana has recovered after dropping as low as $194 earlier this morning, with the alt’s return to $205 representing a 1.5% gain in the past 24 hours.
This comes as the wider market remains down by 1.5% over the same timeframe, with Solana – the fifth-biggest coin in the market – also up by 4.5% in a week and by 10% in a month.
Yet traders may not like that SOL has suffered a 30% drop since hitting an ATH of $293 on January 19, with the token still struggling to regain some real momentum in the face of trade and inflation concerns.
Its indicators, however, suggest that it may be on the brink of a concerted recovery, with its fundamentals remaining as strong as ever.
Solana Tumbles to $194 – Is the ‘Ethereum Killer’ Dying?
Solana’s chart shows an uplift after a difficult weekend, with its relative strength index (purple) rising back towards 60 after several days in an oversold position.
No less encouragingly, SOL’s 30-period average (orange) has begun climbing back towards the 200-period (blue), which again suggests that the coin is regaining momentum after falling too low.
And while the coin’s trading volume had fallen as low as $2.7 billion over the weekend, it has now crept up to $4.7 billion today.
This comes as the past week has seen some pretty large SOL transfers between unidentified wallets, indicating that whales may be buying up the coin while it’s still relatively cheap.
Of course, SOL’s fate will largely rest on what the market as a whole does, with prices, in general, struggling in the past week amid a possible trade war between the US and other nations, including Canada, Mexico, and China.
Assuming things stabilize, Solana is a better position than most other alts to ride a resurgent market.
Indeed, its fundamentals continue to look bullish, with Messari recently publishing a report which revealed that its total app revenue increased by 213% between Q3 and Q4 of last year.
Based on such growth, and based on incoming upgrades such as Firedancer, Solana is likely to recover strongly sooner or later.
Its price could return to $260 by the end of Q2, before reaching $300 by Q4.
New Solana-based Alts Bring Big Potential
The only possible issue with Solana is that may end up becoming a victim of its own success, with its recent growth making similarly dramatic growth less likely this year.
Because of this, some traders may consider diversifying into emerging coins, which can often outperform the market by wide margins when they list for the first time.
One of the best options in this category right now is Solaxy (SOLX), which has raised an incredible $19.2 million in its FOMO-inducing presale.
Solaxy is about to introduce Solana’s first layer-two network, which will make accessing and using the Solana ecosystem easier for investors.
It promises to help users avoid failed transactions and congestion, which continue to afflict Solana despite recent upgrades.
And given that Solana is the most popular network after Ethereum, its improvements could see it attracting plenty of usage.
As its native token, SOLX will serve exclusively to pay for transaction fees, meaning that it could witness strong demand.
Investors can participate in the token sale through its official website, where SOLX is currently selling at $0.00163.
This price will rise tomorrow, so new buyers should act quickly, so that they can lock in the biggest possible returns.
