Solana Price Prediction as Daily Trading Volume Suppresses $2B

Solana (SOL) has experienced an upward momentum in its trading performance in the past month, suggesting a bullish sentiment among investors. SOL has formed consecutive bearish candlesticks weekly, but the closing price remained above the $100 mark. In the latest 24-hour trading period, Solana’s price has decreased by 4.32%, pushing the price to $101.64.

At the weekly chart, the SOL shows a rebound from the lows of $79 in January. The subsequent weeks have seen the formation of bullish candlesticks, pushing the price to a peak of $119. It has increased by 29.9% in the last 30 days. Currently, Solana holds a market cap of $45 billion, ranking it as the fifth largest cryptocurrency. Its trading volume above $2 billion highlights that there’s still plenty of demand for the token, even if some holders are selling right now.

Solana Price Forecast 

Based on an examination of its indicators, SOL might drop more before bouncing back up. The relative strength index (RSI) has dipped below 50 in recent days. Although it managed to avoid dropping below 45 for now, this could be temporary.

SOL’s 30-day moving average (yellow) has stopped going up after a period of sustained growth. It’s likely to start going down towards the 200-day average (blue). Whether SOL drops below the 200-day mark depends on whether its support level (green) can prevent a clear drop below $100.

If it doesn’t hold, SOL might experience more losses, potentially dropping to $95 or slightly lower before recovering. Such a possibility may not be likely because the trading volume is still strong, at around $2.2 billion today. Some of this volume comes from selling, as there have been significant SOL transfers to exchanges in recent days. 

🚨 96,000 #SOL (10,001,872 USD) transferred from unknown wallet to #Coinbasehttps://t.co/pzz6GHJW0n

— Whale Alert (@whale_alert) February 22, 2024

SOL’s market conditions in February 2024 reflect positive trends. However, Solana has experienced a decline exceeding 8.5% over the past week. The crypto community has been mainly focused on SOL’s Total Value Locked (TVL), especially considering its recovery following the FTX incident. Solana holds its position as the fourth-largest layer-one platform by TVL. The recent surge in Solana’s growth can be attributed largely to NFT trading and meme coins. It could hit $150 by the end of the spring and rise to $200 later in the year.

Solana NFTs Hit $5B in All-time Sales Volume

On Feb. 23, data aggregator CryptoSlam reported that Solana-based NFTs saw a record-breaking sales volume of over $5 billion in the past four months. The data also indicates that the blockchain has over 2.2 million buyers and 1.6 million sellers. This raises the overall count of NFT transactions on the blockchain to nearly 43 million.

Since July 2023, the monthly sales volume for Solana-based NFTs faced difficulties exceeding $40 million. However, a shift began to occur after October 2023. NFT sales surged to around $82 million in November 2023, a 192% increase from the previous month’s $28 million. Moreover, in December 2023, Solana NFTs achieved about $365 million in monthly sales, marking its second-highest volume after the $373 million record in October 2021.

Although sales slowed a bit in January, NFTs still made over $239 million in sales for the month. At the time of writing, the monthly sales volume for February is $161 million. The uptick in sales in December coincided with SOL’s bullish price action. On Dec. 26, SOL peaked at $121.45, with a trading volume of $5.7 billion, as reported by CoinGecko.