The cryptocurrency market is currently recovering. During the past 24 hours, the global market capitalization has gained by 4.5% to reach $1.8 trillion, according to data from CoinGecko.
Solana is among the coins leading in the price recovery. The token has made double-digit gains and rallied from around $87 to $96 at the time of writing.
Solana following the market trend
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The Solana token has been hard hit during the recent bear market. Previously, this token used to rally despite recessions happening in the broader market. However, this is no longer the case, as, during the past month, SOL has dipped by around 43.5%.
The reason behind the failure of SOL to show resistance could be partially attributed to the issues faced by the network over the past few weeks. Users have reported four congestions on Solana in around five months, which has raised questions over the scalability of the network.
SOL made a massive dip due to being oversold, and if it has exhausted the downtrend, holders could be in for major gains. Currently, SOL is on an uptrend to reach $100, following a 10.5% gain in just 24 hours.
If SOL breaks past $100, the next major resistance will be at $112, after which it can set the next target at $150. However, reaching such levels depends on whether the market will enter into a bullish trend and maintain the gains.
SOL is still not out of the woods
Solana is still at risk of falling into a bearish trend if the market fails to hold the recent recovery. The token is currently facing a major resistance level at $100, but it fails to reach this price during the ongoing recovery; further dips could be on the way.
If SOL records a price dip, the token could drop to the lower levels of $94. Further dips are also possible if short-term traders continue to sell during recoveries due to fear that further dips could be recorded. The possibility of a dip is even more likely if the network suffers another outage, as this could trigger panic selling from traders.
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