Solana’s price has just hit a new high, as interest in NFTs continues to skyrocket.
At the time of this writing, SOL is trading at $ 240.77, accumulating a gain of 8.14% in the last 24 hours and 22.84% in the last 7 days.
Thanks to the price rally we are seeing, this cryptocurrency is now the 4th largest in the crypto market, only below Bitcoin, Ethereum and Tether.
The NFT market has been one of the main sources of gasoline for the bullish rally of this currency, and the recent change of name from Facebook to Meta, is accelerating the adoption of this new technology, which is expected to be widely involved in the Metaverse.
Even though Solana’s main goal is to compete against Ethereum’s dominance in the DeFi sector, it has been gaining ground more rapidly in the NFT sector.
Even though Ethereum is also a leader in the non-fungible token market, a comparison by Messari shows how Solana is quite a strong competition.
Solana analysis and forecast as NFTs push price higher
Today from the daily chart we observe a great bullish momentum in the short term, which is already beginning to show a bit of exhaustion.
The short-term trend is undoubtedly in the hands of the bulls, thanks to the ever-higher lows and highs.
The moving averages EMA of 8 and SMA of 18 days are crossed to the upside, and somewhat away from the current price.
It is feasible that a small Solana correction is about to begin, however the excitement for the NFTs could quickly slow the decline, or perhaps carry us higher before a pullback occurs.
To think that a major drop will occur, the support at $ 195.70 must be crossed.
On the weekly SOL vs USDT chart we see that the price is just confirming the resumption of the medium / long-term trend, with momentum that could extend further.
Recall that the price of Solana fell back towards 50% Fibonacci in early September, following a giant bull rally driven by the growth of the DeFi and NFT ecosystem on its network.
Now with the recent gains, the bulls confirmed that they regained control. New momentum is developing, and according to the Fibonacci tool, the price should go as low as $ 271 (-27%). Higher up, the next target is $ 340 (-61.8%).
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