Solana price has continued on its rebound as the market digests news on the Bonk airdrop. Seeing that the meme coin is built on Solana, the move has heightened interest in the network. A typical crypto airdrop is meant to attract users through the distribution of free tokens.
What’s driving the Solana price surge?
Solana price hit its multi-year low in the past week. On a broader perspective, it dropped by over 90% in the just concluded year of 2022. This was largely due to its close link to FTX’s Sam Bankman-Fried and the overall crypto winter.
However, it has since rebounded significantly, rising by close to 70% in a span of one week. In particular, the surge recorded on Tuesday was largely due to the news of Bonk’s (BONK/USD) airdrop. The airdrop, which comprises of half of its coin supply, has increased interest in the Solana ecosystem. Notably, about 20% of the airdrop supply are of Solana NFT collections while 10% have gone to Solana developers.
Solana price technical analysis
SOL/USD extended its gains on Wednesday after surging by over 18% in the previous session. After hovering around the psychologically crucial support zone of $10 in the past week, the altcoin has rallied by about 40% since the beginning of the week.
As seen on its four-hour chart, solana price continued to trade above the 25 and 50-day exponential moving averages. Besides, it is in the overbought territory with an RSI of 80.Based on these technical indicators, I expect the crypto to remain on a bullish trend in the short term. Granted, it may record a corrective pullback as the bulls gather additional momentum for a rally towards its next target at 15.00.
In the immediate term, the range between 13.50 and 14.50 will remain a crucial one for solana price. To hit the target at 15.00, the bulls will need enough momentum to break the resistance at 14.96. On the lower side, the support at 12.60 will be worth watching.