Solana (SOL) is trading at $31, up 213% year-to-date, outperforming Bitcoin at 87% and Ethereum at 42%. The SOL price growth is likely to continue into next year, keeping the cryptocurrency rate higher. Technical setups suggest that the Tier 1 token could reach $100 in the new year.
It should be remembered that Solana was one of the cryptos most affected by the collapse of FTX and its subsequent filing for Chapter 11 bankruptcy protection. But SOL has made one of the most surprising returns in terms of its annual returns for 2023.
Although most crypto analysts believe Solanas’ life hangs in the balance due to ongoing developments in the Sam Bankman-Frieds case, the price action suggests otherwise.
Solana price may reach $100 in 2023
One of the most compelling reasons to believe that Solana is on track to become a top performer for 2023 is the cryptocurrency’s performance in the recent past. SOL has jumped from $10 to $30 in the last 10 months. It has increased by 41% in the last seven days, 60% in the last month and 41% in the last six months. Ethereum killer has gained more than 10% in the last 24 hours alone.
After spending nearly a year below the $25 resistance level, SOL finally broke through this barrier, showing the ability of buyers to hold higher levels. For the current rally to continue, Solana needs to produce a daily candle above another major resistance around the $35 level.
Such a move would pave the way for a rally to $40 and take the gain to 29%. A rally above this level is key to start the move to $50 and later double to $100.
SOL/USD daily chart
This positive outlook is supported by the Relative Strength Index (RSI) position in the overbought zone. Price strength at 83 suggests that SOL is firmly in the hands of buyers.
Additionally, the Ethereum killer was trading above the major moving averages (MAs), which provided significant support to the downside. Note that these MAs were called to buy Solana on the daily chart. This was in the form of a golden cross that occurred on October 20 when the 50-day EMA crossed the 200-day EMA. This indicated the strength of the bullish trend.
On the other hand, if the price of the altcoin crosses the $21 low, it will make a new low and invalidate the bullish thesis. In such a case, SOL could retest the low of the V pattern at $17.35.
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