Solana Price Prediction as Healthy Retracement to $100 Hints Potential Rebound

Solana Price Prediction: SOL, the native token of the Solana ecosystem witnessed a notable correction amid the current market consolidation. From the last peak of $118.7, the asset tumbled nearly 16.9% to hit a low of $98.64. However, with the broader trend bullish, the Solana price showcased resilience above the 50% retracement level indicating the bulls continue to remain a dominant force in the asset.

Also Read: Solana Price Prediction: SOL Could Rally To $120 If Bulls Clear Key Barrier

SOL’s Price Surge Mirrors a Sharp Rise in Transaction Fees

The Solana price returned on a recovery trend in late January as the Bitcoin price witnessed a massive inflow into spot ETFs. The positive sentiment boasted the SOL price from $79 to $118.7, registering 50% growth.

The latest data from Power Your Own Research (PYOR), an institution-focused analytics tracker, reveals a striking surge in Solana’s average transaction fee, as highlighted by Ethereum veteran Toghrul Maharramov. The average fee has experienced a staggering 2,800% increase, leaping from a mere $0.001 to $0.03. This 30-fold escalation in transaction costs coincides with a last October-December rally in Solana’s market price, which soared from $19 to $125.

Not so small anymore https://t.co/HKYZkihwSf pic.twitter.com/FrrefKgFNM

— Toghrul Maharramov 🇺🇦 (@toghrulmaharram) February 24, 2024

This trend of rising fees is a testament to Solana’s growing network demand and utilization, underscoring the burgeoning interest in its capabilities. However, it also brings scalability and cost-efficiency to the forefront of the discussion.

By the press time, the SOL price traded at $102.6 and showcased a notable uptick from the 50% Fibonacci retracement level with a Morning Star candle. If the reversal pattern holds true, the Solana coin could chase a potential target of $118, followed by $256.

Also Read: Farcaster Enables Seamless Solana Address Verification on Decentralized Protocol

Technical Indicator

• Exponential Moving Average: Amid the latest retracement, the 50-day EMA slope provides strong pullback support for SOL traders.
• Vortex Indicator: A bearish crossover between the V+(blue) and VI- slope reflects the current correction is waning the recovery trend in this altcoin.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.