In the crypto market, where buying pressure has been increasing, Solana‘s (SOL) price has leapt from the $80 level. The reversal of the downtrend has resulted in a 25% increase in SOL’s price over the last two weeks, reaching up to $98.48. Moreover, the Solana Blockchain witnessed one of the largest token AirDrops to date on January 31, with the decentralized exchange (DEX) Jupiter beginning to distribute approximately $700 million worth of JUP tokens to nearly one million wallet addresses. This massive AirDrop, along with strong growth on the Solana network, indicates that SOL has high potential to surpass the $100 level.
Bullish Reversal Pattern Signals Long-Term Recovery for Solana
As of this writing, Solana is trading at $97, facing a 2.6% decline in the last 24 hours. Despite the sideways trend seen in most major altcoins this week, SOL’s price chart continues to be positive with the formation of an Inverse Head and Shoulders pattern. This pattern is often seen by investors as an indication of accumulating interest and provides significant levels for investors to open long positions.
Furthermore, the Solana Blockchain saw significant growth in the number of new wallet addresses created throughout January, with the count reaching 543.84 thousand. The increase in active wallet addresses reflects a broader participation trend on the network. The rising transaction volume on DEXs and growing interest in memecoins like BONK and WEN contributed significantly to the increased activity on the network in January.
Amidst all these positive developments, SOL‘s price is in a very good position to rise, and as a result, a strong breakout from the formation’s breakpoint at $107 could occur. Such a breakout could increase buying momentum and lead to a 26% rise in the altcoin‘s price to $135.
What Do Technical Indicators Say for SOL?
Popular technical indicators for SOL, such as the Bollinger Bands‘ (BB) flat boundary, indicate that the short-term trend is still sideways. The Relative Strength Index (RSI) is above the 50 level on the daily timeframe, which shows that positive investor sentiment for this altcoin is becoming evident again.
