In the last 14 days, Solana’s price performance has been depressing: it has been losing volatility and value on the market without being able to find any kind of volume. There is a glimmer of hope, however, in yesterday’s and today’s price performance.
Solana surprised the majority of investors by rebounding 24% in the last two days. It is too soon to celebrate the double-digit growth as the beginning of a massive recovery rally.
Despite today’s strong growth, traders and investors should remain cautious. SOL would need to increase 124% from its current price to $31 in order to negate the loss it suffered last month.
Considering the free 80 million floating on the market, such a scenario seems unrealistic, causing a flashcrash with high liquidation volume.
It is also possible for prices to recover as a result of a market correction; after the majority of digital assets became extremely oversold due to market panic, an upward correction is inevitable.
For the third time in two weeks, Solana is consolidating at $14.2 at press time. Short-term recovery could be fueled by the spike in trading volume to 800,000 SOL.
Arman Shirinyan is a trader, crypto enthusiast, and expert in social media marketing. In the future, Arman believes cryptocurrencies and blockchains will be indispensable. His current focus is on cryptocurrency news, articles with in-depth analysis of crypto projects, and technical analysis of cryptocurrency trading pairs.