- Summary:
- Solana price surged by more than 130 percent last month, reversing a strong bearish trend that had seen its value drop by over 90% last year.
Solana price recovery this year has been one of the best crypto stories, following a drop of 56 percent in November triggered by the FTX crypto exchange collapse. In December, Solana also dropped by 30 percent.
However, in January, the aggressive bearish trend that had resulted in Solana losing more than 90 percent of its value in 2022 reversed. The reversal saw Solana’s price surge by over 130 percent in the month, starting a new wave of what looks like a long-term bullish trend.
Why did the Solana Price Surge in January?
There are many reasons why we have seen the Solana price surging in January, among them the dissociation with Sam Bankman-Fried. In early November, Solana’s price dropped aggressively due to the perception that the project was backed by Bankman, whose crypto exchange FTX was crashing at the time. Today, Solana has been able to dissociate itself from the crypto exchange CEO, which has restored confidence in the project.
Another reason for the current price gain has been the current industry-wide crypto market rally. As a result, Solana and other altcoins have entered a bullish trend and traded in the same direction as the bigger trend of the industry.
Solana Price Forecast
As we have seen from the above analysis, the reasons why Solana is currently surging are long-term, including the current industry-wide bull market. Therefore, I expect the bullish trend to continue for the next few trading sessions.
On the technical side of things. Solana recently hit the $27 resistance level and failed to break to the upside. However, rather than start a bearish trend, Solana has traded in a horizontal market for the past two weeks.
This is an indication that, despite lacking the volatility and momentum to break the resistance level, the long-term bullish trend is still strong, and there is a high likelihood that we might see Solana resuming the upside move. This will see it break the $27 resistance level to the upside.
Therefore. my Solana price forecast expects it to trade above the $30 price level in the coming sessions. For the long-term, there is a high likelihood we might even see it push past the $40 price level.
Daily Chart
