- Solana price jumped above the 200-day exponential moving average.
- The coin is gaining traction as investors continue buying the dip.
Solana price has made a strong recovery in the past few weeks as investors place their bets on a turnaround. The SOL token rose to a high of $22.78 this week, the highest level since May this year. It has jumped by more than 71% from the lowest point since June.
Turnaround continues
Solana’s ecosystem has been under pressure in the past few months. The cryptocurrency suffered after the collapse of FTX and Alameda Research in November. The two companies were some of the biggest participants in its ecosystem.
Data compiled by Messari shows how far Solana has fallen. As shown below, the average daily unique users in its ecosystem dropped from more than 325k in Q2’22 to 148k in the last quarter. The total value locked (TVL) in its ecosystem dropped from over $1.8 billion to just $0.3 billion while NFT secondary sales volume dropped from $777 million to $193 million.
On a positive side, the number of daily vote transactions has jumped from over 144 million to 273 million while non-vote users rose from 20.7 million to 24 million. The amount of fees paid in the network has started growing in the past few days.
Solana price also rose on Thursday because of Helium, a player in its ecosystem. Helium is a company that provides decentralized wireless network in its ecosystem. It has created more than 936k hotspots around the world.
Helium’s HNT token jumped by double-digits on Thursday after the coin was listed in Coinbase, a leading exchange in the US. This means that investors, mostly in the United States, can now access the coin.
Solana price forecast
The daily chart shows that the SOL token price has made a bullish breakout as the rally continues. Most importantly, the coin managed to move above the 200-day exponential moving average (EMA). In most cases, a move above the 200MA is usually a bullish sign.
The coin also moved above the important resistance level at $22, the highest level on June 3rd. At the Relative Strength Index (RSI) has been in a bullish trend. Therefore, there is a likelihood that the coin will continue rising as buyers target the next important resistance level at $26.22, the highest point in April and February.
