Solana Technical Analysis: SOL Makes Strong Recovery, Pushes Above $160

Daily Solana Price Analysis

By
Last Updated December 15th 2021
4 Min Read
  • The Solana price has started the current session on a positive note, pushing up marginally. 
  • SOL had registered a significant drop on Monday but pushed up on Tuesday, rising by over 4%. 

The Solana price pushed above the $160 level as the price continued to push higher during the ongoing session. SOL had ended the weekend on a fairly positive note, with the price moving to $172.98. However, the price dropped significantly on Monday, falling by over 10% and dropping to $155.24. SOL recovered on Tuesday, rising by just over 4% and pushing above the $160 level, with the price continuing to move higher during the ongoing session. 

Solana Price Analysis Indicates SOL Could Push To $165 

The Solana price started the previous week on a fairly bearish note, dropping by 1.39% on Monday. On Tuesday, the price continued to drop, falling by almost 2% and settling at $190.39. However, Wednesday saw a recovery, as SOL pushed up by 2.34%, rising to $194.85, before dropping back on Thursday, falling by almost 7% and settling at $181.27. Friday saw the price continue to drop, with SOL registering an even more significant drop of 7.54% and dropping to $167.60.

Image: SOL/USD daily chart 121521

Image: SOL/USD daily

After dropping to $167.60, the Solana price recovered over the weekend, as it rose to $172.09 on Saturday, an increase of 2.68%. The price continued to push higher on Sunday, as it registered a marginal increase of 0.52%, ending the weekend at $172.98. However, the price fell back on Monday, dropping by over 10% and falling to $155.24. Tuesday saw SOL recover, as it pushed back above $160, with the current session seeing the price at $161.

While the Parabolic SAR and MACD are both bearish, we could see them flip to bullish if SOL can recover and push higher.

Image: SOL/USD 4-hour chart 121521

Image: SOL/USD 4-hour

Looking at the 4-hour Solana price chart, we see that SOL dropped to $186.54 on the 8th. The price pushed back above the 20-bar SMA from this level, rising to 4194.85, before dropping back below the 20-bar SMA and falling to $167.80 on the 11th. SOL was able to stay at this level until the 12th when the price rose to $174.54 before falling back significantly and dropping to $153.40. After dropping to this level, SOL pushed up significantly to its current level of $161.

We can see that the Parabolic SAR and MACD have both flipped to bullish, indicating that we could see the price push higher.

Solana Co-Founder: There Was No Network Failure Or DDoS 

The Solana network reportedly suffered from heavy network congestion, leading to many unwarranted claims that the network had gone down. The crypto community has begun roundly criticizing the network, which has experienced shutdowns in the past. 

However, co-founder Raj Gokal clarified that the network did not go down and that there was no DDoS attack earlier this month. It appears that the network experienced a temporary performance drop. Some users found that the network was slower for a day, with some transactions being dropped.

SolChicks said that its Chicks NFT series caused the network to experience performance issues. Tens of thousands of people have been trying to buy CHICKS, causing Solana’s Raydium DEX to crash.

Users on Reddit talked about a large amount of trading on Raydium for the CHICKS NFTs. They noted that there was a history of heavy activity and hype behind the project. This forced Telegram to shut off the group as it was affecting Telegram’s servers.

Critics have mislabelled the incident as a shutdown. The network performance dropped to about 1,000 transactions per second because of the SolChicks IDO. 

The news has led to some market enthusiasts criticizing Solana not being decentralized enough. This criticism has been going on for some time. Polkadot founder Gavin Wood said in September 2021 that decentralization was more important than throughput, which some in the community took as a shot at Solana.

Solana Price Is Expected To Reach These Levels 

Looking at the Solana price chart, we see that SOL has made a strong recovery over the past couple of sessions. If the current sentiment persists, we could see the price push to $165.