3 months ago 2 min read

What Caused the Solana (SOL) Price to Rise 12% in One Day?

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Despite a losing trend, the price of Solana (SOL) has increased by 12% to retake the $11 mark.

In the final week before New Year's Eve, the market value of the "Ethereum-killer" Solana fell by more over $1 billion, hitting its lowest point since February 2021. However, in just a few days as 2023 began, the price of Solana (SOL) rocketed back beyond the $11 level.

Price Increase for Solana (SOL)

With about $500 million flowing into SOL's market capitalization over the previous twenty-four hours, the altcoin grew by 12%, putting its total worth back up to $4 billion at the time of writing.

This comes after Vitalik Buterin, the founder of Ethereum, expressed his favorable support. The previous week, Buterin tweeted that "wise people" had informed him that Solana has a "community of earnest clever developers" and that the network now has a bright future after "ugly opportunistic money guys have been rinsed out." ”

Buterin continued by expressing his great hopes for the Solana community, saying that it will "get its fair shot to develop."

It's also important to note that after being negative for days, TradingView's technical analysis of Solana's two-hour indicators is now primarily bullish. The summary gauge for the analysis shows a "buy" signal at 13 and the moving averages show a "strong buy" signal at 12. Other oscillators are supporting a neutral stance at 8.

Memecoin BONK

The community is anticipating a significant development from a new memecoin on the Solana network, which is fueling the optimistic feeling surrounding the cryptocurrency. The price of the coin with the ticker name BONK has already increased by 135%, and its trading volume has outpaced that of other significant cryptocurrencies.

In the meanwhile, the Solana network's marketplaces that accept the token as a valid payment option have found widespread adoption. Additionally, Austin Federa, Head of Strategy & Communications at the Solana Foundation, recently tweeted in support of the cryptocurrency project with a canine motif.

As of right now, the Solana (SOL) price is trading at $11.13. In contrast to a decline of 1.52% during the previous week, this implies an increase of 13% for the day.

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