Solana price has staged a strong comeback since the start of the new year. The digital asset has climbed by more than 106% in its year-to-date price and more than 72% in the past month. It has jumped by more than 136% from its lowest point in 2023.
Just like most cryptocurrencies, Solana price crashed hard late last year in November due to the collapse of Sam Bankman-Fried’s crypto exchange FTX. However, it was worse for Solana due to its significant exposure to the defunct FTX and Alameda Research.
However, Solana has made a significant recovery this year as investors rushed to buy the dip. Macro conditions have also boosted SOL’s price. The cooldown in the US inflation has seen Solana rally in the past few weeks. According to data published, the headline Consumer Price Index (CPI) for December came in lower at 6.5%.
Solana price has been hovering above its pre-FTX levels boosted by the number of transactions and active accounts in the network. The activities in the Solana ecosystem began rallying after Ethereum’s co-founder Vitalik Buterin, showed his support for the Solana network in one of his tweets.
Solana Price Forecast
Solana price has been among the best performers in the past few days, before pulling back at the start of this week. During the past few weeks, SOL has managed to move above the 50-day moving average but remains below the 200-day moving average. Its Relative Strength Index (RSI) is in the overbought zone.
Therefore, the Solana price is likely to continue rallying as bulls eye the resistance level at $39.70. However, a drop to the support at $15.00 cannot be ruled out.