Solana Price Prediction as SOL Becomes 10th Most Traded Coin on the Market – Can SOL Reach $100 This Year?
SOL, the cryptocurrency that powers the high-performance smart-contract-enabled Solana blockchain, has been edging lower in tandem with the broader cryptocurrency market on Monday and price predictions are becoming more pessimistic. Despite the uninspired price action, a lot of trading is taking place under the hood. According to CoinMarketCap, Solana saw more than $600 million in trade volumes over the past 24 hours, the tenth most of any cryptocurrency.
SOL/USD was last trading just to the south of its 21-Day Moving Average (DMA) in the $23s per token, now down more than 13% versus its late-January highs in the $27 area as traders asses mixed signals coming from the US economy in the form of recent strong US jobs and ISM Services PMI data versus an underwhelming corporate earnings season thus far.
These mixed signals have added to confusion regarding how much further tightening to expect from the Fed in the quarters ahead. Solana traders will thus need to keep an eye on remarks from Fed chairman Jerome Powell who is speaking on Tuesday – at last week’s Fed meeting, he came across as less hawkish than many had been expecting, boosting crypto prices at the time.
Risks seem to be rising that the Fed might not be quite as dovish as everyone was hoping as recently as one week ago. That raises the risks of a short-term pullback in cryptocurrency markets. Solana’s short-term technical picture has also darkened a tad in light of the cryptocurrency’s recent failure to muster a sustained break above the $25-27 resistance area and the 200DMA at $26.30.
With the cryptocurrency now under its 21DMA and eyeing a test of near-term support in the $22 area, some technicians are expecting a pullback toward support in the $20 area. Meanwhile,
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