Solana price dropped 6% during the December 28 trading session but has since climbed 0.55% to trade for $105.82 as of 12:40 a.m. EST time.
Trading volume has climbed 6% on the day as the bulls make a comeback, evidenced by a budding green candlestick on the daily timeframe. This suggests that the Solana price rally may be far from over, with the bulls still active around the $100.00 psychological level. Meanwhile, Solana remains a popular topic in the crypto ecosystem.
— Sjuul | AltCryptoGems (@AltCryptoGems) December 27, 2023
Nevertheless, the correction saw SOL lose its position to Binance Coin (BNB), which now stands at position five on market capitalization metrics after surging past the $300 psychological resistance on December 27.
Solana Price Outlook
After forming a new multi-week high at $126.36, Solana’s price is trading above the 78.6% Fibonacci retracement level at $102.80. Judging from the outlook of the Relative Strength Index (RSI), the bulls could pivot around this level for another push north as momentum is rising.
Also, the trajectory of the RSI could see Solana price cross above the signal line (yellow band), a crossover that is often interpreted as a buy signal. Traders heeding this call could send Solana’s price parabolic.
The histogram bars of the Awesome Oscillator (AO) are also in the positive territory, suggesting the bulls maintain a presence in the SOL market. The Moving Average Convergence Divergence (MACD) indicator is also moving above the signal line (orange band) after crossing above it on December 19. This shows that the market conditions still favor the upside.
Increased buying pressure could see Solana’s price rise potentially clearing the range high at $126.36 before an attempt to fill the market range above $127.20.
Nevertheless, the AO histogram bars are flashing red, suggesting the bears are also active in the SOL market. The MACD is also inclined south, pointing to the effective pull of the bears.
Increased seller momentum could see Solana’s price lose the support at 78.6% Fibonacci level of $102.80 to test the most important Fibonacci level of 61.8% at $83.64. While a break and close below the level would be a significant blow to the bulls, the prevailing bullish outlook would only be invalidated once Solana price breaks and closes below 50% Fibonacci’s level at $70.18.
Such a move could open the drains for a continuation of the downtrend, with Solana price likely to test the 38.2% Fibonacci level at $56.73 or in a dire case, extend the fall to the 23.6% Fibonacci level at $40.08.
Meanwhile, attention has shifted to Sponge V2, featuring among analysts’ top picks for the five new cryptocurrencies to invest in 2024 with prospects for 100X gains.
Promising Alternative To Solana
Sponge V2 presents itself among the promising alternatives to Solana, taking the stage as the upgrade to the Sponge V1 project.
📣 We’re excited to announce that #Sponge is bridging from V1 to V2!
— $SPONGE (@spongeoneth) December 18, 2023
The token is only available through Stake-To-Bridge. When buying or staking Sponge V1 through the website, the user will receive an equivalent amount of Sponge V2 and then receive staking rewards from their locked V1 tokens over 4 years.
🔥 Important Reminder! 🔥
You must take your staked $SPONGE tokens from the V1 staking contract and stake them in our V2 smart contract. 🙌
— $SPONGE (@spongeoneth) December 28, 2023
With other analysts listing Sponge V2 among the best meme coins to invest in with potential for exponential growth, even Tron founder and Huobi Global advisor Justin Sun has taken an interest in the meme coin. Crypto watchers have spotted Sun making a huge move, in line with similar transactions by other whales readying for the next crypto bull run. It comes after he indicated plans to shift attention towards meme coins.
I’ve decided to begin actively trading meme coins and promising projects through my public address. Please note, I will personally bear all potential losses from these trades, and any profits made will be donated entirely to charity.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 11, 2023
A wallet address (0x176f3dab24a159341c0509bb36b833e7fdd0a132) tagged as ‘Justin Sun 4’ on Etherscan holds crypto to the value of $530 million, comprising SPONGE, with Sun holding 108 million SPONGE V1 valued at $43,246.
The Sponge V1 to Sponge V2 upgrade appears to have attracted the attention of the likes of Justin Sun to grab a potential 100x returns after the original version of Sponge recorded exponential growth. The Sponge team has also promised new tier 1 exchange listings as well as a pivot into the fast-growing gaming sector.
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