Solana Price Approaches $130: What’s Behind The Recent Surge?

The Solana price has shown encouraging signs of recovery, climbing 6% on Friday to approach the $126 mark. This uptick follows a concerning dip below the crucial $120 level, which had sparked fears of a potential downtrend that could drag the cryptocurrency down toward the $100 threshold.

Solana Price Gains Ground

Chris MacDonald, an analyst at The Motley Fool, recently highlighted two key factors contributing to Solana’s resurgence. One significant catalyst is a proactive initiative by the Solana Foundation. 

Bitcoinist reported earlier this week that the organization is currently assessing whether its network can withstand potential threats from quantum computing technologies. 

In collaboration with Project Eleven, a security firm specializing in post-quantum cryptography, the Solana team has launched a quantum-resistant testnet following a comprehensive threat assessment. 

The second notable factor driving the Solana price uptick is the announcement from health and wellness company Mangoceuticals, which revealed plans to allocate $100 million toward acquiring and holding SOL. 

Despite the positive momentum, experts caution that Solana’s price is currently following a “clean corrective structure.” 

Moving Averages Signal Downtrend

From a technical analysis perspective, the 50-day simple moving average (SMA) is situated around $143, significantly higher than the current trading range, while the 200-day SMA looms even further at approximately $170, suggesting a prevailing downtrend rather than a healthy consolidation phase.

In the short term, the 20-day exponential moving average has also rolled over near $133 and has consistently rejected previous attempts at a bounce. 

Analysts note that until the Solana price can close above the low-$130s for an extended period, any rebounds will likely be seen merely as counter-trend movements. 

Immediate support lies just below current trading levels at the $125 mark, followed by critical levels in the $121–$120 range, and another demand zone around $110. 

A more significant downturn could push the price into the high $90s, with projections indicating a potential dip to around $80 if liquidations accelerate further, as NewsBTC reported on Thursday.

The market has already registered an eight-month low near $116.9. A decisive close beneath that level could likely drag the Solana price toward the psychologically significant $100 mark. 

On the upside, the Solana price could encounter initial resistance clustered in the $133–$138 range, with stronger resistance observed in higher levels between $144 and $147 that could prevent any new recoveries in the short-term.

To facilitate further price recovery, the Solana price will need to clear that second group of resistance levels on a daily close, ideally supported by increased trading volume, to pave the way toward prices between $160 and $165.

Featured image from DALL-E, chart from TradingView.com