Solana’s price has shown encouraging signs of recovery, rising 6% on Friday to approach $126. This rebound follows a concerning dip below the key $120 level, which had raised fears of a potential decline toward $100.
Analyst Chris MacDonald of The Motley Fool recently highlighted two factors behind Solana’s resurgence. The first is a proactive initiative by the Solana Foundation, which is assessing whether its network can withstand potential threats from quantum computing. In partnership with security firm Project Eleven, the team has launched a quantum-resistant testnet following a comprehensive threat assessment.
The second factor is an announcement from health and wellness company Mangoceuticals, which plans to allocate $100 million to acquire and hold SOL.
Despite the positive momentum, experts caution that Solana’s price is currently following a “clean corrective structure.” From a technical perspective, the 50-day simple moving average (SMA) is around $143, well above current trading levels, while the 200-day SMA is near $170, suggesting a prevailing downtrend rather than healthy consolidation. The 20-day exponential moving average has also turned lower near $133 and has consistently rejected previous bounce attempts.
Analysts note that until Solana’s price can close above the low-$130s for an extended period, any rebounds will likely be seen as counter-trend moves. Immediate support lies near $125, followed by critical levels between $121 and $120, and another demand zone around $110. A deeper decline could push the price into the high $90s, with some projections indicating a potential drop to around $80 if liquidations accelerate.
The market recently hit an eight-month low near $116.9. A decisive close below that level could pull the price toward the psychologically significant $100 mark.
On the upside, initial resistance is clustered between $133 and $138, with stronger resistance between $144 and $147 that could hinder short-term recoveries. For a sustained recovery, Solana’s price would need to close above that second resistance group on a daily basis, ideally with increased trading volume, to open the path toward $160 to $165.
Frequently Asked Questions
FAQs Solanas Recent Price Surge Toward 130
Q1 Im new to crypto What is Solana
A Solana is a blockchain network like a digital public ledger designed to be very fast and cheap for processing transactions and running applications Its native cryptocurrency is called SOL
Q2 Why is Solanas price going up so much lately
A The recent increase is driven by a combination of factors strong overall growth in the crypto market increased activity and trading volume on the Solana network itself and growing positive sentiment from investors and developers
Q3 Is this just because of Bitcoins price rise
A Partly yes A rising Bitcoin price often lifts the entire crypto market However Solana is also seeing its own unique momentum from increased usage and developer interest which is giving it an extra boost
Q4 What specific things are people doing on Solana thats helping the price
A Key drivers include
DeFi NFTs A resurgence in decentralized finance applications and nonfungible token trading on Solana
Memecoins A wave of popular viral memecoin trading has occurred on Solana bringing in lots of users and transaction volume
Network Performance Solana has maintained high speed and low fees despite the increased traffic proving its scalability
Q5 Are there any new technical developments behind this surge
A Yes Developers are actively building and upcoming network upgrades aim to make Solana even faster and more reliable This longterm confidence attracts investment
Q6 Is it too late to buy SOL now that its near 130
A This is not financial advice Cryptocurrency prices are volatile While the trend is currently positive prices can go down as quickly as they go up Never invest more than you can afford to lose
Q7 What are the main risks with investing in Solana
A The primary risks are high price volatility potential for network congestion or outages if demand spikes too quickly and general crypto market risks like regulation
Q8 Where can I safely buy and store SOL