The Solana price is bouncing back after dropping sharply amid this week’s cryptocurrency sell-off. SOL is trading at $45.65, which is more than 57% above the lowest level this week. It has a market capitalization of more than $12 billion and is the 15th-biggest cryptocurrency in the world.
What happened: For starters, Solana is a fast-growing blockchain project that allows developers to build decentralized applications. SOL is the native currency or token that is used to power the network. Recently, Solana has become relatively popular among traders because of its proof-of-stake technology. They see it as a faster alternative to Ethereum.
This is not the main reason why the Solana price has bounced back today. Instead, the reason is that the rest of the cryptocurrency universe has also rebounded. For example, Bitcoin is trading at more than $40,000, which is substantially higher than yesterday’s low of below $30,000. Other coins like Ether and Binance Coin have all jumped.
The four-hour chart shows that the Solana price is attempting to continue its recovery trade. The currency is stuck at the 25-day and 15-day exponential moving averages. Most importantly, it seems like bulls have struggled moving above the important resistance at $49.75.
Therefore, at this stage, it is relatively difficult to predict whether the currency will retest its all-time high of $58.3. For this to happen, bulls will need to move sharply above the resistance at $49.75. However, a drop below this week’s low at $28 will signal that it is still a sellers’ market. This means that they will attempt to push it to the next support at $25.
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