Solana Price Forecast: SOL Price Discovery Explores Past $70 As $80 Beckons
- Solana price Solamakes haste above $70 and trades a new all-time high of $74.5.
- SOL ignores the recent DeFi hack, implying that investor interest in the sector remains unchanged.
- A 12-hour to a daily close above $70 could push Solana toward $80.
Solana exploded towering the cryptocurrency market with fireworks on Tuesday during the Asian session. The platform has been a highly sought-after layer 1 blockchain solution provider, especially for decentralized finance (DeFi) and non-fungible token (NFT) sectors.
A new all-time high has been achieved at $74.5 after Solana closed the day above $70. Analysts had predicted an extended price discovery mission, especially with an increased investor appetite for the token. Solana uses the Wormhole Bridge to support communication and transfer of data between blockchains such as Ethereum and Binance Smart Chain.
The breakout to new record highs for Solana and Terra hint at heightened demand for products in the DeFi sector. Meanwhile, investors do not seem spooked or derailed by the biggest DeFi hack last week. Although the $600 million was returned by the hackers, the incident exposes the risks that are still apparent in the sector.
What Comes Next For Solana?
After lifting to a new record high, Solana retreated toward $70. Currently, the token is trading at $71 as bulls battle to ensure stability is not compromised, perhaps with the establishment of higher support at $70.
It is essential to realize that buyers have the upper hand, especially when the Moving Average Convergence Divergence is considered. As the MACD moved above the mean line, buying pressure surged, and confidence in the rally increased. For now, the trend still favors the bulls, as emphasized by the widening gap between the 12-day exponential moving average and the 26-day EMA.
At the same time, the Relative Strength Index (RSI) keeps ignoring overbought conditions, suggesting that SOL is in the ultimate bull cycle. As bulls secure higher support, the chances of another upswing to $80 rise. Hence, the RSI may keep moving up, reflecting the bullish grip on Solana.
SOL/USD Daily Chart
According to Santiment, the chatter around Solana kept on exploding as the price hit new record highs. An uptick in social volume reflects increased investor interest. Initially, the price tends to rally as the volume spikes.
Solana Social Volume
However, an increase in volume is not indicative of continued price growth. Soon investors start selling the news while traders taken profits, increasing overhead pressure. Therefore, Solana may trim gains in the near term, especially now that it’s overbought.