Why Solana (SOL) Price Surged 4% Today? Will SOL Rally or Crash Next?

The cryptocurrency market witnessed an exciting day today, as most tokens, including the SOL token, attempted recovery. According to the market

The cryptocurrency market showed signs of recovery on Monday, with most tokens, including SOL, attempting to regain lost ground. According to recent market statistics, the price of Solana experienced a 4% surge. As Bitcoin price struggles to maintain higher levels, investors are keeping a close watch on this digital asset and other altcoins. But what exactly caused this sudden price increase? Let's delve deeper into the matter.

Solana Price Surged 4% Today: Here's Why

At press time, Solana price is trading at $179.70 after surging 4% in the last 24 hours. This surge comes as a relief to investors after a major crash to three-month lows at $161.54. Notably, this surge occurred as investor sentiment shifted toward the meme coin scam involving the recently launched Libra token.

Moreover, this surge is part of a broader market recovery, with Bitcoin price Surging to $97.8k, BNB price Surging to $667.10, and more. The 10% increase in SOL token's trading volume also suggests rising institutional interest in the token.

Crucially, recent on-chain data reveals a surge in whale transactions. One Solana whale withdrew 174,767 SOL, valued at $29.88M, and proceeded to stake it. Such withdrawals tend to influence the sentiments of other investors in the market.

Another key aspect to consider is the growing demand for Solana. Notably, the leading crypto exchange Coinbase recently listed Solana futures on its crypto derivatives product. This move will greatly enhance exposure to SOL token and boost its institutional adoption.

Solana Price Next: Rally or Crash?

The daily SOL chart showcases a decline from the $260 supply zone, resulting in a 44% correction and highlighting the bearish pressure on Solana. More importantly, the extended downtrend emphasizes waning investor interest.

Interestingly, the crucial level to watch is $168, which could dictate an uptrend or downtrend. A successful bounce from this level has resulted in today's 4% surge, and continuation could lead to a retest of the $190 resistance as part of the mean reversion play.

If SOL price manages to clear the $190 market, it could reach the $200-$210 range. However, failure to hold $168 may lead to a pullback to $155 before crashing to $140. Despite the recent bullish influx, this Solana prediction could change drastically in the volatile market.

Investors are advised to keep an eye on the $168 level and conduct their own research before jumping into a trade.

Final Thoughts

The 4% surge in the SOL token highlights its strong demand and resilience in the crypto market. With institutional interest rising and the discussion of a Solana ETF continuing, we may see further institutional interest forming. However, it is more crucial for Solana price to remain above the key level of $168.

A successful jump from here could ensure a rally to $190, $200, or even $210. Failure could lead to a crash to $155 and even $140 if the downtrend continues. Investors should DYOR and trade strategically.

Common Queries (FAQs)

1. What caused Solana's initial price crash?

2. Why did the SOL token price increase by 4% today?

3. Is Solana expected to reach $200 next?