Solana (SOL) experienced a triumphant rebound as it soared 5% after a three-day drop that saw the cryptocurrency plunge by 8%. Traders felt bullish vibes on the speech given by US Fed Chair Jerome Powell as it created the perfect opportunity to reverse the SOL price trend.
The mention of the word “disinflationary” was enough to ignite a buying frenzy and propel Solana’s price to new heights. But as the dust settled, traders realized that Powell’s speech was not as bullish as they initially thought, fueling a decline in confidence and Solana’s potential.
Solana Faces A Rough Road In February
The road ahead for SOL may not be as smooth as the market had hoped, with significant obstacles emerging on the horizon. As bullish traders begin to tire and lose energy, there is a growing possibility that Solana may witness a shift in traders’ sentiment, forcing them to focus on other investments. Though January was a successful month for SOL, February seems to bring a challenging situation in the SOL price chart. As a result, the bulls may be on the hunt for new investment opportunities to put their money to work.
Solana witnessed the highest development activities in one year as developers on the network surged by 83%. Moreover, the recent partnership with Brave Browser marked a significant adoption activity, onboarding a large number of mid-cap investors to the network. This partnership allows users to access top-notch applications like Magic Eden and execute DeFi transactions.
SOL Price May Ignite A 10% Downward Correction
After plunging to the bottom level of $10 in December, the SOL token brought a ray of bullish hope in January as it began the new year on a positive note. However, sideways trading has created uncertain situations among traders as many are feeling less confident in taking positions. Despite positive news on the Solana network, the market is eagerly waiting for the next move in the upcoming days.
According to CoinMarketCap, SOL price trades at $22.6, with a decline of 2.2% in the last 24 hours. The daily price chart suggests that Solana has failed to move above its crucial resistance zone of $25, which weakened the buying pressure. Solana currently shows mixed signals as it holds at a consolidated level. It is predicted that Solana may go for $23, and a failure to retest the level will dump the token near the EMA-50 trend line at $20.
However, there is a crucial resistance level for validating a bullish season in February. If the SOL price breaks above $25, it may witness a spike in trading volume, sending the token above the EMA-200 trend line at $29.2.
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