- Solana price remains steady with an ascending parallel channel.
- Honk Kong Virtual Asset Consortium chooses SOL over XRP following the former’s stellar performance in December.
- The prevailing bullish outlook would be invalidated if the Layer 1 smart contract token’s price breaks and closes below $89.02.
Solana (SOL) price was a top performer across December, rising almost 120% within the month. The surge bolstered the position of the cryptocurrency, putting SOL on the pedestal against its contender, Ethereum (ETH). The impressive surge drew Solana founder Anatoly Yakovenko out to quell debates on SOL versus Ether.
Also Read: Solana Price Prediction: Make or break moment as SOL runs back to the trendline with falling TVL
SOL dethrones XRP on HKVAC list
In a recent press release, the Hong Kong Virtual Asset Consortium (HKVAC), which serves to rate digital asset trading platforms and crypto market indexes, revealed having replaced XRP with SOL on its top five list of cryptocurrencies global index.
HKVAC replaces XRP with SOL
The number of constituent assets will be maintained at five, according to the HKVAC. The move comes after Solana managed to take the fifth position on the list of cryptocurrencies by market capitalization, sidestepping XRP, which moved to the sixth position.
Meanwhile, Hong Kong’s efforts to bolster the crypto industry within the region have not gone unnoticed. The country’s financial regulator declared preparations to receive spot crypto exchange-traded funds (ETFs) in December. This came as the US Securities & Exchange Commission (SEC) was reviewing the spot BTC ETFs that were approved last week.
Recent reports have also indicated that Hong Kong’s industry leaders are also calling for spot BTC ETFs of their own, urging regulators to approve them.
Hong Kong needs to speed up approval of spot cryptocurrency exchange-traded funds after US launch, industry insiders sayhttps://t.co/RkaPcZtxhf
— Modern Crypto News (@ModernCryptoNew) January 14, 2024
Co-founder and chief executive of digital asset custodian Cobo, Mao Shixing, alias “Discus Fish”, said, “[Hong Kong needs to launch spot virtual asset ETFs as soon as possible to] ensure that the city remains competitive in the global cryptocurrency market.”
Solana price outlook as SOL ascends on HKVAC list
Despite recent corrections, Solana price remains bullish and has consolidated within an ascending parallel channel. This bullish technical formation could deliver more gains as long as SOL remains within its confines.
From a technical standpoint, the Relative Strength Index (RSI) is rising to show increasing buying strength. If the trajectory of the RSI is maintained, it could soon cross above the signal line (yellow band) with the crossover interpreted as a buy signal. Traders heeding this call could catalyze the upside potential for Solana price, sending it past the midline of the channel above the $100.00 psychological level.
In a highly bullish case, Solana price could extend to tag the $112.38 resistance level or even extrapolate the rally to the range high at $126.36. Such a move would denote a 30% climb above current levels.
SOL/USDT 1-day chart
Conversely, seeing as the histogram bars of the Awesome Oscillator (AO) are southbound, bears are fastening their grip on SOL. This is accentuated by the nose-diving Moving Average Convergence Divergence (MACD) indicator, which continues to move below the signal line (orange band), after crossing below it during late December.
If profit takers have their way, Solana price could lose the immediate support at $89.02 to collect the buy-side liquidity residing underneath. In a dire case, the fall could extend to the $68.03 support floor, 30% below current levels.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
XRP struggles near $0.7440, could still sustain rally after Robinhood listing
Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.
Dogecoin price forecast: Miners offload $240M as DOGE approaches risk zone
Since Donald Trump’s victory on November 5, Dogecoin has emerged as the best performing asset among the top 10 ranked cryptocurrencies. On November 12, DOGE reached a new milestone price propelled by Trump’s statement confirming Elon Musk’s involvement in the incoming administration.
Ethereum Price Forecast: ETH's declining supply could fuel bullish pressure toward $3,732
Ethereum is trading near $3,220, down 2.5% on Wednesday after its supply began trending downward. The declining supply could fuel bullish pressure for the top altcoin, especially as institutional demand for ETH ETFs is also rising.
PEPE hits new all-time high, rallies nearly 50% following Robinhood and Coinbase listing
PEPE rallied over 50% on Wednesday and hit a new all-time high after crypto exchanges Robinhood and Coinbase announced they would list the meme coin on their respective trading platforms.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.