After a brief decline, Solana price has entered what seems to be a bullish phase once again, as part of a broader positive movement in the crypto markets. The bullish momentum comes amid a positive macroeconomic shift and corporate adoption.
What’s Behind Solana Market Surge?
On Friday, May 3, Solana’s rose to $142, up 3% from the previous day. Its performance followed a larger trend in the crypto market, as the crypto market cap in the same period increased by 3.75% within 24 hours, reaching $2.29 trillion. This surge was influenced by several major developments, including macroeconomic factors and adoption.
Firstly, the Federal Reserve has signaled a shift towards a less hawkish monetary policy, maintaining the interest rates unchanged at 5.25% to 5.50% while indicating the potential for three rate cuts in the coming year. This shift is beneficial for riskier assets like crypto, as investors divest from low-yielding bonds.
Adding to the sentiment, PayPal announced a partnership with cryptocurrency firm MoonPay, opening its ecosystem to crypto trading. The move opens up crypto to PayPal’s 426 million customers worldwide. In light of this, Solana’s technical indicators have shown a significant bullish reversal.
What Solana Technicals Say?
Solana’s recent increase to $142.09 is supported by several short-term buying signals from its moving averages. The 10-day Exponential Moving Average (EMA) and Simple Moving Average (SMA) stand at 139.63 and 138.94, respectively, both indicating a buy.
However, medium-term indicators signal caution. Specifically, the 20-day EMA and SMA, at 144.90 and 142.20, respectively, and the 30-day EMA and SMA, at 148.94 and 151.71, all hint at sell signals. These suggest that Solana might face resistance near these higher average values. Oscillators, which help identify market momentum and potential reversal points, also show a mixed sentiment. The Relative Strength Index (RSI), sitting at 45.93, shows a neutral position, not in overbought or oversold territory.
The MACD (Moving Average Convergence Divergence), with a value of -7.02, indicates a buy signal. This suggests increasing bullish momentum, which if sustained, could push Solana’s price further up. Other oscillators like the Stochastic RSI and the Commodity Channel Index are also in neutral zones. Given the latest surge, Solana demonstrates robust short-term growth, supported by favorable technical indicators. However, the mixed signals from medium-term moving averages and oscillators suggest a potential reversal in the future.
At The End
Despite ongoing congestion issues causing a significant surge in transaction failures, Solana investors remain undeterred. Technical analysis emphasizes present market sentiment over future price predictions. This uptick in Solana’s price alongside the broader crypto market is noteworthy as it signifies growing investor confidence and acceptance within the mainstream financial ecosystem, highlighting the increasing integration of cryptocurrencies.
