Solana’s native coin, SOL, is one of today’s top performers, pumping by 24%. But analysts anticipate a correction.
Solana’s momentum is increasing as its native coin outperforms its brethren today. However, the dust has yet to settle from the FTX fiasco and its impact on Solana. This could have longer-term impacts on SOL prices, so this pump may be short-lived.
Furthermore, Solana was boosted by the BONK meme coin airdrop, which appears to have run out of steam. BONK has already slumped 67.5% in just four days, proving that it was a pump and dump.
Crypto analyst ‘Bluntz’ has looked at the past couple of months applying an Elliott Wave trading pattern. If the scenario continues to play out, SOL could retrace to previous levels around $12. However, the analyst added that it would likely be a good dip to buy.
Solana Community Remains Loyal
Solana on-chain activity remains in the doldrums, however, lending more weight to the notion of a pullback.
Despite the SOL price pump, there has only been a minor increase in DeFi TVL and activity. TVL for the ecosystem is up around 9% on the day to $254 million. However, it is down a whopping 97.5% from its $10 billion peak in November 2021, according to DeFiLlama.
Transactions, wallet activity, transfer value, and developer activity have all been hit hard since the FTX collapse. Solana is still plagued with technical issues, the latest being that the Foundation’s RPC endpoints went offline yesterday due to another bug.
However, some industry experts remained positive.
Links DAO co-founder Mike Dudas remained confident that the technology and community remained strong. He added that more developers were on the way.
Solana co-founder Raj Gokal also posted praise for the ecosystem in a Jan. 9 tweet:
“I’m only happy when things on Solana are happening too fast for me to keep track. Then I know entropy and organic evolution are happening at the right pace, unbounded, like the early internet. Feels like that right now.”
If Solana can truly distance itself from the FTX/SBF septicity, then things could be looking up already.
SOL Price Surges
SOL is one of today’s top performers, with a whopping 24% gain. As a result, the coin hit an intraday and two-month high of $16.46 a couple of hours ago. Furthermore, SOL has made an impressive 62% over the past week.
However, those epic short-term gains must be put into perspective, as the asset has been picking itself off the floor. SOL prices dumped to $8.40 in late December 2022 and are still down 94% from their peak price of $260 just fourteen months ago.
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