Solana Has the Potential for a 30% Increase if It Stays Stable in the Ascending Channel
Solana (SOL) has experienced a strong December, rising nearly 120% over a 30-day period. This surge has solidified its position in the cryptocurrency space, bringing SOL back to the "Ethereum killer" path.
SOL Replaces XRP in the HKVAC List
Recently, Bitcoin Magazine reported that the Hong Kong Virtual Asset Exchange Association (HKVAC), which evaluates digital asset trading platforms and cryptocurrency market indices, has revealed that it replaced XRP with SOL in the top 5 global crypto index.
The composition of assets will be maintained at 5, according to HKVAC. This move comes after Solana secured the fifth position in the market capitalization cryptocurrency list, surpassing XRP, which has shifted to the sixth position.
Solana Price Prospects
Despite recent corrections, the Solana price continues to rise and consolidate within an ascending channel. This technical uptrend could bring more profits as long as SOL remains within its boundaries.
From a technical perspective, the Relative Strength Index (RSI) is rising, indicating increasing buying pressure. If the trajectory of the RSI indicator is maintained, it may soon surpass the signal line (yellow), with the crossover understood as a buying signal. Traders paying attention to this may boost Solana's potential for price increase, pushing the price above the midline of the channel around the psychological level of $100.
In the case of a strong price increase, the Solana price may extend to the resistance level of $112.38 or even rise to the high end of the range at $126.36. Such a move would represent a 30% increase from the current level.
On the contrary, when the Awesome Oscillator (AO) charts move southwards, the bearish camp is tightening its grip on SOL. This is emphasized by the Moving Average Convergence Divergence (MACD) trending downward, continuing to move below the signal line (orange) after crossing below it at the end of December.
If the selling side strengthens profit-taking, the Solana price may lose immediate support at $89.02 to gather buyer liquidity below. In a severe case, the downward momentum could extend to the support level of $68.03, 30% lower than the current level.