Solana price movements have been incredible in drawing everyone’s attention to the whole crypto market. Solana price, reportedly trading at $44.91, recently reached a new all-time high of $290 on January 20. The recent surge has left many wondering: Could Solana go back to $370? Since altcoin is a large-cap cryptocurrency, its price may well be influenced by the market, especially the price of Bitcoin.
Solana’s Price Dashes to $290 Due to Market Rally
Recently, Solana’s price has had an excellent run. On January 20, SOL rose by 18.8% within 24 hours against other leading altcoins. For example, Bitcoin [BTC] appreciated by less than 5% over the same period while large-cap tokens were down.
“Price growth of Solana was accompanied by major funds inflows, and its prospects are bright in the DeFi and the growing NFT market,” according to David Keller, a crypto analyst at MarketWatch.
One of the main drivers behind this is the increasing need for Solana-based projects, including the recently launched meme coin, Official Trump [TRUMP]. Also, the rumors regarding Solana’s price in the US ETF and the possibility of the US having a strategic oil reserve also helped buoy the market.
From a technical perspective, all the underlying bullish indicators appear to be extremely powerful. Constructing an even higher capital buying signal, the Chaikin Money Flow, which measures the flow of capital, is on a level last seen in March 2024. In the meantime, Solana’s Relative Strength Index (RSI) is already in the overbought range to point out such demand.
Is $370 a Realistic Target for Solana’s Price?
When a digital asset reaches its new all-time high, attention turns to the next levels in Solana’s growth. According to analysts, $331.9 and $373.6 are the Fibonacci extension level figures.
These levels are rooted in Solana’s previous wave, up from $155 to $264, with retracement levels holding up support at $178. It is one worthy that this level has been defended by the bulls over the last few weeks, creating the foundation for the current up move.
However, there are some risks that analysts suggest investors need to worry about.
“The market is very volatile right now and despite Solana price recent rise, it might come to a halt at around $300,” Wong added.
Coinglass provides a heatmap of liquidations, which shows that the key liquidity zones have been targeted, allowing SOL to focus on $370. However, given that Solana is still a relatively unknown crypto, with the current Bitcoin price hovering around $105,000, any major shift is this price could severely affect the coin’s future movement.
Bitcoin Price Movement Indicates for Solana Price
A default move in Bitcoin has been encouraging an equally proportional ripple effect in altcoins, including Solana. In the past, directionally, one witnessed that Bitcoin has always performed well when the rest of the crypto market is bullish.
Currently, Bitcoin is close to its ATH, and this makes the overall picture rather favorable for Solana to keep on going up. But, any steep fluctuations in Bitcoin’s price may hamper Solana’s growth going forward.
Advertisement Banner
Another factor to assess is the prevailing and or upcoming market trend. In the prior year, Solana has drawn much attention to itself for the unprecedented low fees and speedy process of transactions, thus emerging as the competitor to Ethereum [ETH]. This positive sentiment, complemented by increasing institutional participation, may well continue to support the Solana bulls.
Conclusion
Solana’s recent price surge to $290 marks a significant milestone, but the question remains: Can it hit $370? Data from technical analysis and internet statistics show the potential for this, but investors should carefully consider investing in it due to instability in the cryptocurrency market. Solana will be in a position to retain the upward trend dependent on the Bitcoin performance and other market factors affecting the market.
Solana keeps on being remarkable in the world of cryptocurrencies while only enhancing its use and market participation. Even with the projection shoved to $370, there is still great potential for its sustainable future growth. Keep following The Bit Journal and keep an eye on Solana’s price.
FAQs
- What is Solana’s all time highest price?
To the date of January 20th, 2025, Solana’s current all-time high is $290.
- Who is Solana, and what has caused the massive rise of its price?
The rise of Solana’s price as of late can be traced to the growing integration of Solana into the DeFi and NFT space, massive inflows to funding, and participation in rumors that linked and inspired Solana ETF’s and strategic reserves in the US.
- What do you make of $370 as a possible achievement for Solana?
Although on logical and rational grounds we may set $370 as achievable from the factors relating to the Fibonacci extension and the market movement, mostly it depends on how Bitcoin performs and the rest of the cryptocurrency market performs.
- How does Solana’s price respond to the price change of Bitcoin?
It is also dragged by Bitcoin, as are most of the other cryptocurrencies that are in the market today. If Bitcoin sustains it bullish performance with the same speed, one can expect Solana to carry on with the same performance.
- What are Solana’s support and resistance levels?
The strong support is seen around $178 with resistance levels likely around $300 with targets $331.9 and $373.6.
- How does Solana differ from other players in the crypto market?
Nonetheless, Solana is famous for low fees, high speed, and scalability with a focus mostly on DeFi and NFT.
Follow us on Twitter and LinkedIn and join our Telegram channel to be instantly informed about breaking news!
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
