Solana (SOL) Price Shows Impressive Market Strength, Trading Around the $177 Mark

Solana (SOL) showed impressive market strength, trading around the $177 mark on May 12, its highest price level since early March

Solana (SOL) showcased impressive strength, trading around $177 on May 12, its highest since early March. This was fueled by a confluence of large holder movements, broader market optimism, and bullish technical indicators setting the stage for its price path on May 13.

Solana’s short-term outlook will be influenced by key developments, including:

* Key levels on Solana price chart. Credit: Benzinga Pro

What Happened: On-chain data from Santiment highlighted substantial activity from large Solana holders, a factor likely to influence May 13 sentiment based on recent trading trends.

FTX/Alameda’s staking address recently unstaked 187,625 SOL, valued at $32.24 million. However, the wallet still holds a massive 5.2 million SOL, currently worth $913.5 million, in staking.

8 hours ago, the #FTX / #Alameda staking address unstaked 187,625 $SOL, worth $32.24M.

The wallet still has 5,203,577 $SOL, worth $913.54M, in staking.https://t.co/J12fFBaCXV pic.twitter.com/hmDqa2AvWE— Santiment Network (@Santiment_io) May 11, 2024

Within eight hours, another previously dormant whale performed a large unstaking action of 103,040 SOL, valued at $17.7 million. The wallet will retain over 3.36 million SOL, worth over $584 million, in their portfolio.

While such movements often precede profit-taking or broader cryptocurrency price trends.

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What Else Happened: Solana’s rally continues to be driven by the rapid growth of its meme coin ecosystem. Tokens like Bonk, dogwifhat, Popcat, and Peanut the Squirrel have seen a remarkable surge.

As of press time, the Solana meme coin market cap stands at $15 billion, having more than doubled from $6 billion in April, as per CoinGecko.

Furthermore, applications for spot Solana ETFs from VanEck, 21Shares, Grayscale, and Bitwise are pending approval from the SEC.

If approved — especially with staking being allowed— JPMorgan estimates an influx of $6 billion in the first year alone, with a best-case scenario of $15 billion. These estimates are triple the figures stated in December 2023.

* Where to Buy Solana (SOL)

Solana can be bought and sold on various cryptocurrency exchanges. Some of the popular exchanges for trading Solana include Binance, Coinbase, Huobi, Kraken, and FTX. It is advisable to select a reputable cryptocurrency exchange that operates in accordance with the laws of your jurisdiction.

Solana’s Key Technical Levels to Consider: On the daily chart, Solana exhibits strong bullish momentum. Fibonacci Extensions indicate possible targets at $177.33 (2.618 level), which is currently being tested. Other key resistance levels to watch out for are $191.06 (3.618 level) and $199.54 (4.236 level).

The Relative Strength Index (RSI) is at 63.36, placing it slightly below overbought territory. This signals the continuation of strength, with scope for a further push upward before exhaustion sets in.

Solana price chart on May 13. Credit: Benzinga Pro

The MACD remains bullish with the MACD line (blue) remaining above the signal line (orange), and the histogram bars are green, indicating ongoing buying pressure.

Support levels are likely around $163.60 (1.618 Fib) and $156.21 (1.0 Fib), should the price experience a short-term retracement.

Solana Price Prediction: What’s Next for SOL?Solana price is up over 100% year-to-date and has seen a particularly strong move in May. The cryptocurrency is now trading at its highest price level since early March.

As the price of Solana continues to rise, it will be interesting to see if it can reach new all-time highs. If the bullish momentum continues and the key technical levels are breached, we could see a rapid move to new highs.

However, it is important to note that the cryptocurrency market is highly volatile and anything can happen in the short term. If there is a sudden shift in market sentiment or if there is negative news about Solana, this could