Solana Price Seemingly Stable at the Support Level of $145

Solana (SOL) is a cryptocurrency project that is slowly becoming – or at least one of the best options – for developers across the crypto industry. The project was launched in early 2020, but it didn’t attract that much interest until early 2021.

It exploded after the rise of DeFi and NFTs, but the real reason behind its growth was the fact that Ethereum fees became unbearable for anyone except the rich, who could pay gas fees that rose to $70 and more in May 2021.

After Ethereum fees reached an all-time high, developers and users alike started to leave. At the same time, this was the same period when Solana began to see a significant increase in inactivity and the value of his token.

After a slow summer, the project started to see a real spike that sent it five times higher than the ATH it had previously seen in May 2021.

Solana price in 2021

As mentioned, the price of SOL started growing in early 2021, from $1.84 on January 1st to $17 on February 24th. By May 18, the coin reached ATH at $55.91, and while it corrected over the summer – dropping to $24.45 at its lowest level – it started seeing another rally after July 20.

At first, its growth started slowly, and it took the coin nearly a month to go from $24 to $44. But then, between August 13 and September 8, the coin rose from $44 to $191. This spike in new ATH had its consequences, however, and SOL corrected just as quickly as it jumped.

The correction brought it down from $191 to $123 in about two weeks, but soon after, the coin was able to start recovering again. Its first attempt at redemption only took it up to $150 before it went down again, this time to $130. The second attempt was more successful, bringing the SOL to $175, then correcting it to $150.

However, the third attempt led to a completely new milestone of $210 on October 25, after which the coin corrected to $183, to rise again again for the last time, reaching an all-time high which is still its biggest all-time record. – $259. Solana reached this mark on November 6, and while its price continued to fluctuate thereafter, the general trend of the currency after this milestone was quite bearish.

Chart 2

Solana price drop for 3 months

After peaking on the 6th of November, the price of SOL has begun to decline. Its decline was stopped for the first time by the support at $235 on November 11, which allowed it to try to recover a bit, to $241. However, as the ongoing crash involved the entire market, SOL simply wasn’t strong enough to resist the downside, and it was dragged down again.

After falling for 5 days, Solana found himself in another support, this time at $195. From here, he shot another short hike, and interestingly enough, he managed to recover quite a bit – at first. In three days, between November 18, 2021 and November 21, it managed to recover as much as $231, only to be dragged back into the bearish wave and crash back to $195.

While the support managed to hold it, the coin’s popularity was still strong enough to allow Solana to experience one last recovery, and this time, it even managed to hit the $235 resistance before its price was rejected.

This next price drop was much steeper than the others, and between December 2 and December 14, SOL lost about $80, ending up at $155.

At this point, the crash that drove down prices was over, and the holiday season was about to begin, giving investors the necessary encouragement to start buying again. After all, historically, cryptocurrency prices have grown in the festive period, and the year before, in December 2020, the price of BTC not only rose to the past ATH of $20 thousand, but managed to surpass it by almost $10,000 and almost reached $30 thousand. Before 2021 even started.

Encouraged by these facts, investors began buying and pushed the price of SOL to $200 by December 27. Unfortunately, around Christmas, another drop in cryptocurrency prices started spreading across the market, with some coins affected sooner, others later. Many began experiencing dips days before the holiday, while others began experiencing dips on Christmas Day itself.

Solana was one of the few who were able to continue climbing until after the holiday, and his descent began on December 27. This indicates that community support was strong, as SOL did not seize the first opportunity to collapse. However, it wasn’t strong enough to continue pushing it against the market for a long time, and so starting on December 27 Solana started a crash that brought it back to levels last seen in September 2021.

Solana continues to decline in 2022

On December 27, Solana was at around $203, but by the end of the next day, the coin had already dropped to $180, and by December 29, it found itself struggling to stay above the $170 support level. The coin has spent the last few days of the year vacillating between this support and resistance at $180, and as we cross from 2021 to 2022, the situation has remained relatively unchanged. At least for the first few days.

On January 1, SOL was under resistance at $180, trying to break it, but as the days went by, its strength started to give up. The coin finally retraced support around $170 on January 4th, and later that day, it surrendered support at $170. SOL price fell just below it, and spent the next two days trying to fix this bug, pushing hard against the new resistance problem.

Chart 3

Unfortunately, this was not enough, and soon the currency began to fall even more. By the 10th of January, it reached its lowest point on the chart to date, dropping to $131. However, since then, SOL has started to see a slight rebound that has occurred over the past five days. From its lowest point on January 10, the coin recovered to $157 on January 13, correcting back to $145.

She’s spent the past several days at this level, and right now, she seems to be stabilizing here. Whether this will continue or not – remains to be seen. However, it is clear that SOL has the potential and the desire to grow. The only thing stopping it is the bearish wave that has dominated the market since mid-November 2021.

To learn more about this token, visit Solana’s Investment Guide.