Some cryptocurrency prices are green today, February 21. Bitcoin, the chief crypto, Ethereum, and a few other assets have added gains to their past prices. However, many cryptocurrencies are still red as the total cryptocurrency market cap is down by 1%.
But many of these coins still maintain some of their 7-days gains, retaining their position among the top gainers. Among the top gainers is Solana, with an 18% increase over the past seven days. As of today, Solana is down by nearly 4% in 24 hours, trading at $25.19, with over a 40.49% decline in trading volume today.
SOL prices would fly since it maintains most of its weekly gains or plunges following cryptocurrency price trends. The developmental trends and price analysis below will hint at what might be coming for SOL.
Solana Ecosystem Trends, Could They Be Responsible for SOL Price Actions?
SOL has observed impressive price gains since the beginning of 2023. Opening the year at $9.96 on January 1, Solana (SOL) rose above $16 on January 10 and continued its uptrend. On January 14, SOL price surged from $18 to $24 but recorded some pullbacks on January 29 after rallying to $26.
SOL price has been rallying and correcting from February 1 till the 20th, when it gained 13% ($2) and pushed to 26.47. However, today February 21, SOL has pulled back to $25.26, a 4% decline from its February 20 price.
With a 24% 7-day price gain, SOL is outperforming the global cryptocurrency market, which has increased 10.7% over the past seven days, as per CoinGecko. SOL is also outperforming similar Smart Contract platforms’ cryptocurrencies, which have increased by 14.20% over the past seven days.
As for Solana’s 7 days price performance, it’s safe to say that the ecosystem events and activities might be sustaining it. One such trend is the upcoming Helium network migration to Solana by March 27. This merge between the two blockchain platforms will increase on-chain activity on Solana and add more users to SOL.
Secondly, the increase in NFT sales is another development in the Solana ecosystem that might be sustaining SOL’s price. According to data from Cryptoslam, Solana-based NFTs saw an increase in buyers.
The report noted that Solana NFTs buyers increased by 14.64% within 24 hours, surpassing Ethereum-based NFT buyers, which recorded a 13.22% increase during the same period. The increase in Solana-based NFT buyers, as reported by SolanaLegend, could be due to the lower cost of dropping NFTs on Solana than Ethereum.
Also, the Solana network is encouraging developers to build on the blockchain. Solana even added some incentives for developers willing to build on its network via the ongoing global hackathon. It could be among the factors sustaining SOL’s 7 days price performance.
Solana has formed a red candle on the daily price chart. It has been in an uptrend since February 17 and is recording a slight pullback today to consolidate its gains in the past week.
The Relative Strength Index (RSI) is currently at 58.93, which is in the neutral zone. It means the bulls and bears are at equilibrium in the market. The indicator seems to be falling, which could signal a further dip in the asset’s price.
However, SOL is trading above its 50-day Simple Moving Average (SMA), a short-term bullish signal. Also, it is just breaking above its 200-day SMA, indicating a long-term bullish sentiment. SOL’s MACD (Moving Average Convergence/Divergence) is just breaking above the signal line, a bullish sentiment.
SOL’s support levels are $21.94, $23.13, and $24.77, with the resistance levels at $27.60, $28.80, and $30.44. SOL will likely rest on the $24.77 support in the short term before it gathers momentum to break the $27.60 resistance.
Note that cryptocurrencies experience price fluctuations and uncertainty. Also, they can deviate from past price behavior or a specific trend. Therefore, proper risk analysis and technical skills are required to trade cryptocurrencies.