Over the weekend, the price action of Solana started to show extremely bullish signs as the price of the cryptocurrency suddenly began to rise. The bears appeared to have retaken control of the market when a 20% rise to the upside took the crypto price from $30.3 to about $39 in less than two days.
However, Solana has entered a bearish correction that is almost as strong as its bullish rally and has fallen by 12.88% over the last day and by almost 6% over the last seven.
SOL trades at about $31.52 at the time of writing, with a market cap of 11.3 billion dollars after a 13% drop.
Over the weekend, Solana's market cap blasted through the 13 billion mark, bringing it closer to overtaking Cardano, ranked ninth largest cryptocurrency by market cap, with a $13.9 billion market cap.
However, Solana has reversed its trajectory after hitting the $39 resistance.
After breaking through the $39.17 support (red line) to the downside in mid-August, the price of Solana has tried twice to break above again and has failed both times.
After breaking this important support level to the bottom in August, Solana tried again in September and was rejected, causing a bearish rally that ultimately took the cryptocurrency to a multi-month low of $26.82 in October.
Solana rose with the rest of the cryptocurrency market over the last ten days of October and finally hit the $39.17 zone again this weekend.
The bears have rejected the price again, and Solana has reversed for another retest of the $30 (blue line) zone.
The bulls on Solana are expected to defend this price level with fervor and pushback against the bears.
If a bounce off the $30 support happens, the price of Solana may rally further to the upside, attempt a retest of the $39.17 zone, and even succeed in breaking out from this level with support from its bulls.
Conversely, if a breakdown of the $30 support happens, the price of the cryptocurrency may retest the multi-month low around the $26.86 zone and fall lower if the bulls fail to defend it well enough.
Circle, the worldwide digital financial company and issuer of USDC, plans to strengthen its support for Solana in 2023 with the new Euro coin (EUROC) project.
In a tweet, the firm announced the introduction of Euro Coin and Circle's new permissionless cross-chain infrastructure (Cross-Chain Transfer Protocol) on the SOL network in the first half of 2023 during the Solana Breakpoint event.
In June, Circle released the fully-reserved, euro-pegged stablecoin known as Euro Coin. The stablecoin, which bears some similarity to the Dollar-pegged USDC, was originally powered solely by the Ethereum network. However, Solana has been included and is now expected to fall under the same umbrella.
According to Sheraz Shere, the head of payments at SOL labs, the introduction of the Euro Coin on Solana will unlock new use cases for quick foreign exchange (FX), give traders optionality with a new base currency, permit lending and borrowing of Euro Coin, and will be offered alongside USDC as a payment currency on SOL Pay.
Circle also plans to develop its Cross-Chain Transfer Protocol on the SOL network. Even though it was announced in September this year, the permissionless cross-chain technology has not yet been implemented.
It is scheduled to launch on Ethereum (ETH) and Avalanche (AVAX) at the start of 2023 and expand to Solana in the first half of 2023.
Despite the price rejection from the $39 zone, Solana's price analysis indicates a strong possibility of bullish momentum and additional bullish chances. Additionally, the bulls have demonstrated their strength over the last few days and may soon seize long-term market control.
Therefore, based on the cryptocurrency's price outlook, Solana is predicted to have a bright future, where the bulls completely retake control from the bears.
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