- Solana price is auctioning within a consolidative range, likely to resolve with an explosive move.
- The SOL network shows an uptick in development activity, which has previously played a role in price fluctuations.
- A break on either side of the coiling zone will result in a 15% swing.
Solana price is preparing for its next surge as price consolidates since November. Based on recent months, the SOL price leans more bearish. Still, the current range can squeeze out more gains. Key levels have been defined to assess a bullish and bearish scenario.
Solana price setting up shop
Solana price has endured ping-pong price action since the middle of November. On December 12, the centralized smart-contract token is bound to a range that has compressed from a 15% spread down to just 6% within three weeks. On smaller time frames, the congestion has day traders making hasty bets against one another while dually fighting for position with algorithmic trading bots.
Solana's price is currently trading at $13.12. On-chain metrics display the algo traders’ interest in SOL despite the waning liquidity. According to Santment's Development Activity indicator, the Solana network witnessed a 100% increase in development in the last three weeks. The metric calculates updates on Solana's GitHub Repository. GitHub is a medium for programmers, often algorithmic traders, to collaborate and share codes. The repository rose to 78 billion on September 6 from 35 billion on November 28.
Historically, Solana's Development Activity indicator has been rather timely, with sudden market selloffs correlated to influxes in development. On more than one occasion since September 2021, when the indicator doubled relative to its previous swing, the Solana price would sell off by more than 50%. These selloffs can be spotted on December 18, 2021, April 2, 2022, and August 24, 2022.
From a technical standpoint, the Solana price consolidation could lead to a 15% swing in either direction. The projection is based on classical price action techniques utilizing the largest spread within the current range. A break above the recent swing high at $14.43 could prompt a rally into the mid-$16 zone. On the contrary, a breach below the recent swing low at $12.82 could be the catalyst of a 15% decline toward the yearly low at $10.94.
SOL/USDT 12-Hour Chart
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
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.