Solana (SOL) Price Prediction as Technicals Point to a Comeback

Solana (SOL), the fifth-biggest cryptocurrency, dropped to the psychologically important support at $200.

Solana (SOL) price dropped sharply on Friday after the Federal Reserve made a hawkish decision on interest rates. The coin declined to a low of $200, which was the lowest level since March 28. At its peak this year, SOL was trading at $260.

Solana price set for a comeback

The SOL price has been in a strong bear trend in the past few months as investors reacted to the rising inflation in the United States and the subsequent interest rate hikes by the Fed. The coin has crashed by more than 90% from its all-time high, which was attained in November last year.

In the past few days, however, technicals have pointed to a possible comeback by Solana price. For one, the coin has formed a falling wedge chart pattern, which is usually a bullish sign. It is also forming a break and retest pattern, which happens when an asset rises above a key resistance and then retests it. In this case, the coin rose above the support at $203, which was the highest point on March 28.

Solana price also remains above the 100-day and 200-day Exponential Moving Averages (EMA) and the Murrey Math Lines support. As a result, there is a high probability that SOL coin will bounce back and start beast mode soon. If this happens, the next level to watch will be at $263, which was the highest swing last month. A break above that level will signal more gains to 300.

Solana fundamentals are strong

Solana price is also supported by strong fundamentals. The network has become a major challenger to Ethereum (ETH) in attracting developers and users.

According to TokenTerminal, Solana had over 5.1 million users in the last 24 hours. This was significantly higher than Ethereum’s 441,000 and Tron’s 2.4 million.

Solana has also generated substantial fees this year. Its ecosystem has raked in over $700 million in fees. Solana’s fees are much lower than Ethereum’s, which are at $2.42 billion.

Moreover, Solana has become a leading network in the meme coin space, with its ecosystem tokens having a collective market capitalization of over $20 billion. It also has a large presence in the Decentralized Public Infrastructure space through platforms like Helium (HNT) and Hivemapper.

Most importantly, there are hopes that the next Securities and Exchange Commission will approve a spot Solana ETF. Gary Gensler’s SEC declined to approve such an ETF as it considered SOL to be a security. Paul Atkins may decide to approve blue-chip coins.