Solana‘s fortunes in the crypto markets seem to have reversed for the better with the new year. At the time of writing, SOL/USDT is trading at $13.74 after a local peak of $14.24 earlier today. A week ago, Solana (SOL) hit a local low of $8, meaning that with its recent peak value, it has gained an impressive 78% in the same time.
Solana Needs to Reclaim $15 for a Bullish Narrative to Be Maintained
As mentioned earlier, Solana is trading at $13.74, which is still an impressive 72% increment from a week prior. The one-day SOL/USDT chart below, courtesy of Tradingview.com, shows that $15 remains the level to watch for Solana to maintain a bullish narrative that could propel it back to levels before the collapse of FTX and Alameda research.
Solana’s Revival Can be Attributed to the Launch of a New Memecoin, Bonk (BONK)
Also, from the chart, it can be observed that Solana’s one-day MFI (green), MACD and RSI (red) are yet to hit overbought territory. Therefore a push to $15 is likely in the next few hours or days.
As to why Solana is pumping, the founder of Ethereum, Vitalik Buterin, tweeted support for the chain in late December, stating that the project’s bad actors had been ‘washed out’. He added that Solana has a bright future due to a community of sincere developers.
However, it has since emerged that Solana’s reversal of fortunes in the crypto markets is also attributed to the launch of a new Shiba-Inu dog-inspired meme-coin known as Bonk (BONK). The memecoin was launched last week, and interest has grown substantially after the project airdropped about 50% of its 56 trillion token supply to its users. Another 20% was airdropped to Solana NFT collections.
We’re here to reward everyone that made #Solana what it is today
— Bonk! (@bonk_inu) December 8, 2022
Data from CoinGecko shows that Bonk (BONK) recently set a new all-time high of $0.00000256. The move is a 2,871% increment from its December 29th all-time low of $0.000000086142.
Therefore, if the hype surrounding Bonk (BONK) is maintained, Solana could very well be on a path towards erasing the unfavourable outlook due to its links to FTX and Alameda Research.
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