Solana Prices Flirt With $100 Level After Notching Latest Gains

Solana prices have spent much of the day trading reasonably close to $100, fluctuating near this level but failing to muster the strength to break above it.

SOL, which serves as the native token of the high-yield Solana network, rose to $99.16 today. CoinMarketCap Figures show.

After reaching this point, where it was less than 1% away from reaching the $100 level, which some analysts have pointed to as significant, the cryptocurrency pulled back a bit, but still managed to retain most of its recent gains, trading primarily north of $97 until around noon, additional data from CoinMarketCap reveals.

While the altcoin suffered additional losses over the next few hours, it managed to recover later, trading at around $97 at the time of writing.

“Solana is generally considered an even better protocol than Ethereum for important cryptocurrency uses, including decentralized finance,” said Joe DiPasquale, CEO of the cryptocurrency hedge fund manager. BitBull Capital.

“Usage of the solana protocol has remained high, making it an investor favorite. But $100 remains an important resistance line in both technical and psychological analysis,” he observed.

"While we expect Solana's price to appreciate, we were not surprised to see investors selling at $100 as it consolidates before approaching that line again," DiPasquale said.

He was not the only one to highlight the $100 level, as Armando Aguilar, an independent cryptocurrency analyst, also identified it as a price where significant selling pressure has built up.

Earlier this month, he described the market's rejection of that particular price level as "ongoing," stating that traders had been putting sustained selling pressure on the digital currency after it experienced some very compelling gains in the last quarter of 2023.

Just around Christmas, the digital asset surpassed $120, hitting its highest level since April 2022 on CoinMarketCap.

Since then, SOL's price has declined significantly, falling below $80 around January 23, having lost approximately a third of its value.

Following this drop, several analysts stated that the price of the digital asset had become somewhat inflated.

Tim Enneking, CEO of Digital capital managementadopted this point of view.

“Sol, like most of the rest of the cryptocurrency market, was horribly overbought, leading to BTC ETF spot approvals,” he said. fixedadding that the bullish pressure was compounded by a relief rally related to the lifting of the FTX debacle.

However, he described the market as "oversold" following its recent pullback, and emphasized that it remained to be seen how much cryptocurrency prices would recover as the so-called halving approached.

While digital currency markets are notoriously volatile, several analysts expressed bullish sentiment around the Solana network and its native digital currency.

One of these market watchers is Brett Munster, who serves as a portfolio manager for Block Force Capital.

"Solana has a lot of momentum for the rest of the year," he said.

"The Firedancer client is expected to be released in the first half of this year and should significantly improve network performance," Munster said.

“Stablecoin usage on Solana is growing and Solana has become the chain of choice for many of DePIN's top projects.”

Disclosure: I have some bitcoins, bitcoin cash, litecoin, ether, EOS and SOL.