SOL Price Prediction: Solana (SOL) Returns to $41 with an Eye on $45

Key Insights:

• Solana (SOL) fell by 1.27% on Wednesday. Following a 7.25% tumble on Tuesday, SOL fell back to sub-$39.
• Negative investor sentiment towards more network downtime, coupled with bearish sentiment across the broader crypto market, weighed mid-week.
• Technical indicators are bearish, with SOL sitting below the 100-day EMA.

On Wednesday, Solana (SOL) fell by 1.27%. Following a 7.25% slide on Tuesday, SOL ended the day at $38.79.

A bullish start to Wednesday’s session saw SOL strike an early high of $40.89 before hitting reverse.

Falling short of the First Major Resistance Level at $42.17, SOL slid to a day low of $38.29.

Steering clear of the First Major Support Level at $36.88, SOL revisited $40 levels before ending the day in the red.

The bearish sentiment from the broader market contributed to the downside, with bitcoin (BTC) returning to sub-$30,000 mid-week.

Adding further downward pressure was further network downtime, which continues to plague Solana and token holders.

Dip Buyers Jump in As Solana Network Conditions Stabilize

Despite frequent network outages, the news wires continue delivering price support.

On Wednesday, FX Empire reported Solana plans to seed invest and issue grants across ‘all web3 verticals, emphasizing South Korea’s crypto games development sector.’

According to the report, Solana Ventures and the Solana Foundation have committed $100 million to support South Korean startups, focusing on DeFi, GameFi, gaming studios, and NFTs.

In addition to grants and seed funding, Solana also aims to provide South Korean developers with product and engineering guidance.

The latest initiative comes in the wake of the TerraUSD (UST) and and Terra LUNA meltdowns and the launch of Luna 2.0.

Solana (SOL) Price Action

At the time of writing, SOL was up 6.24% to $41.21. A bullish morning saw SOL surge from an early morning low of $38.41 to a late morning high of $41.90.

SOL broke through the First Major Resistance Level at $40.36. Coming up against the Second Major Resistance Level at $41.92, SOL eased back to sub-$41.50.

Technical Indicators

SOL will need to avoid sub-$41 and the First Major Resistance Level at $40.36 to retarget the Second Major Resistance Level at $41.92.

A broad-based crypto rally would support a move back through to $41.50 levels.

In the event of an extended rally, the bulls could target the Third Major Resistance Level at $44.52 and resistance at $45.

A fall through the First Major Resistance Level and the $39.32 pivot would bring the First Major Support Level at $37.76 into play. Barring a bearish afternoon session, SOL should steer well clear of sub-$37. The Second Major Support Level sits at $36.72.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. SOL sits below the 100-day EMA, currently at $43.70. This morning, the 50-day EMA closed in on the 100-day EMA. The 100-day EMA flattened on the 200-day EMA, both bullish signals.

A move through the 100-day EMA would bring $45 into play.