It's been an explosive month for SOL, the cryptocurrency that powers Solana’s high-performance layer-1 blockchain protocol. The cryptocurrency was last trading higher by about 145% on the month in the mid-$24.00s and is up an even more impressive more than 200% versus its end of December 2022 lows under $8.0 per token.December was a dire month for Solana’s price as investors continued to dump the token on concerns that the collapse of potentially fraudulent cryptocurrency exchange FTX in November, a big supporter of the Solana ecosystem, would result in the “death” of the ecosystem and cryptocurrency.But Solana has a decentralized ecosystem of supports and applications that, while struggling in wake of the collapse of FTX and withdrawal of all the liquidity it used to provide, continued to express support for the Solana project.
Various metrics, as discussed in this recent article, suggested that activity within the Solana ecosystem remains robust in wake of the FTX collapse – far from an ecosystem that is dying.This, alongside the broader cryptocurrency market rally in January as a result of a combination of macro tailwinds and optimism that the Bitcoin bottom might be in, has supported this month’s aggressive rally.
And Solana technicals are looking good.The cryptocurrency has been able to recover to the north of its 21, 50 and 100-Day Moving Averages and now appears to have formed a bullish trend channel.
That suggests the near-term technical outlook is to the upside.SOL/USD hasn’t so far been able to break to the north of resistance in the $26.0 area.Read more on cryptonews.com