The Solana price has declined by 4.5% in the past 24 hours, retracing its steps back to $104.89 after a strong weekend for the altcoin and wider crypto market.
SOL has now risen by 8% in a week and by 12.5% in the last 30 days, with the coin also sitting on a very impressive 400% gain in the past year.
Given just how strongly SOL has rallied in recent months, it’s arguable on the basis of indicators that the coin is likely to correct further.
Yet analysts expect the crypto market to become increasingly bullish in the face of rising Bitcoin ETF inflows, implying that SOL could see further strong gains after a brief correction.
Solana Price Prediction Following Recent Rally – What Do Market Indicators Suggest?
Looking at SOL’s chart, it’s possible that the coin may fall further in the near term, at least judging by its indicators.
Most obviously, its relative strength index (purple) has fallen from around 65 to 55 in the past day or so, signalling a clear loss of momentum.
Source: TradingView
Having said that, its 30-day moving average (yellow) is in more of a mixed position, with the average still rising modestly beyond the 200-day average (blue).
But with SOL’s current price dropping towards the 30-day, the two latter could end up falling in the next one or two weeks.
It’s probable that it won’t fall far, however, since SOL’s support level (green) has resisted big drops since December, implying that the current correction shouldn’t be too severe.
The reason for SOL’s gains over the weekend – which today’s drop hasn’t dented too much – is that Bitcoin ETF volumes have buoyed the market and trader optimism considerably, having a beneficial effect on most altcoins as well.
688,765 #SOL (73,965,690 USD) transferred from unknown wallet to unknown wallethttps://t.co/lMRmxkMfM0
— Whale Alert (@whale_alert) February 9, 2024
But as strong as SOL still looks in the medium- and long-term, traders need to be mindful of the possibility of another outage.
After nearly a year of 100% uptime, the Solana blockchain went down for around five hours last week, raising question marks as to whether it had truly recovered as a network from 2022’s issues.
At the moment it seems as though few traders are especially bothered by the recent downtime, yet if something similar happens in a relatively short space of the time, the Solana price could take a big hit.
But for now, growing bullishness and rising Solana usage is likely to push SOL up to $150 by the spring.
Small-Cap High-Potential Alts
Because SOL rose so aggressively last year, there remains a chance that it won’t rise quite as vigorously this year, instead enjoying steadier growth.
For traders looking for quicker above-average gains, the temptation may therefore be to look towards smaller cap alts, particularly those that could rise strongly as they list on new exchanges.
Possibly the prime candidate to do this at the moment is Sponge (SPONGE), an ERC-20 cryptocurrency that launched the second version of its token last week.
Known as SPONGE V2, this second version replaces the earlier version of the popular meme coins, which originally listed – and surged – on exchanges in April 2023.
SPONGE V2 is currently listed on Uniswap, yet the token’s interesting new features will certainly mean that other exchanges will list it soon enough.
For one, the token’s new version features an improved staking model, providing a variable yield that can rise significantly depending on the number of stakers and how much they’ve staked.
If you missed out on $SPONGE V1, don’t miss out on #SpongeV2!
Time to stake your $SPONGE! #MemeCoin #Web3 #Altcoins #BullMarket #Bullish #Trade pic.twitter.com/oNwatR7ihw
— $SPONGE (@spongeoneth) February 10, 2024
Secondly, SPONGE V2 is the native token for a soon-to-be-released P2E racing game set in the Sponge universe, giving the coin more utility than many other new meme tokens.
In this incoming game, players will compete to rank the highest on a worldwide leaderboard, with the best among them receiving rewards in the form of SPONGE tokens.
Investors can already buy Sponge V2 by going to Uniswap or by visiting the official Sponge website.
Source: DEXTools/TradingView
Impressively, the token has gained by 86% since listing a week ago, yet further listings are likely to push it even higher in the coming weeks.
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