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Solana price rebounds off weekly low — Is $90 SOL possible?

Solana price rebounds off weekly low — Is $90 SOL possible? Solana’s price recovers as the wider market continues to correct.

Solana’s SOL SOLtickers down$87 token encountered robust resistance at $102 on Jan. 17, followed by a 23% correction to a five-week low at $78.60 on Jan. 23. However, the movement reversed as SOL rebounded by 10% in less than 24 hours and put a temporary end to the bearish price action. Traders are now questioning whether the recovery was backed by solid fundamentals and whether SOL can push back above $90.

Solana price rebounds off weekly low
SOL token average price in USD, 12-hour. Source: TradingView

Part of the movement can be attributed to the recently launched “token extensions” on the Solana network, which allow confidential transfers to hide balances, transfer hooks for gated access, and the ability to charge fees at the protocol level. These updates were included in the v.1.17 release of the Solana Labs validator client announced on Jan. 19. The plug-and-play functionalities are designed for enterprise applications and regulator-friendly resources.

Solana network upgrades prioritize speed and stability

Another source of optimism comes from Firedancer, a promising new third-party validator client currently under development. Developed by Jump Crypto, this solution aims to increase Solana’s processing capabilities toward millions of transactions per second and provide support for parallel processing (sharding).

A post on the X social network by user R89 highlights how Solana’s network stability has changed after multiple failures in 2022.

It’s interesting to see how reliable Solana has been since the rough patch in 2022, while remaining incredibly performant as usage surged and it dominated competitors in most metrics.

The network will continue to improve, and @jump_firedancer is coming.— R89 (@R89Capital) January 22, 2024

Solana sustained its performance throughout 2023, while some of its competitors, including Ethereum layer-2 scaling solutions, dealt with outages amid a surge for blockchain space.

The first wave of successful Solana SPL token airdrops to reach centralized exchanges was marked by Jito’s JTO staking solution and the BONK memecoin in December 2023. The movement triggered demand for SOL tokens as users rushed to take part in the multiple airdrops, some confirmed and others purely speculated on.

A quick search on social networks for mentions of Solana airdrops reveals the intense interest some investors have in the phenomena. While there is no way to predict how many of those leads will materialize, the mere speculation creates a surge in demand for SOL and boosts Solana network activity.

mike berdoni

Ai senior consultant

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