Where is Solana [SOL] price heading?

As the new year dawned, major altcoin Solana [SOL] seemingly headed for a slow start as it sank by more than 17% in just 3 days only to recover by 6% at $179 along the same time period. Amidst ambitious predictions by the community, the overall market traded in the green on the first day of 2022 fuelling hope for an exciting beginning after a dull December.

At the time of writing, SOL’s price was changing hands at $176 with a 24-hour trading volume of $1.07 billion. The coin surge by 1.81% in the last 24 hours. However, Solana posted a decline of 11.21% in the weekly index. The 5th ranked asset’s market cap stood at $54 billion as per data on Coinmarketcap. With respect to the price technicals, the overall outlook does not look too grim.

Solana [SOL] price technicals analysis

From the four-hour chart above, in the trading aspect, the Relative Strength Index [RSI] indicator hovering below the 50-median is indicating the dominance of the sellers and the weakening position of the buyers in the coin market. However, the Chaikin Money Flow, [CMF] cruising above the equilibrium layer is indicating an increase in the capital inflow. Riding along a similar trajectory, the green price bars of the Awesome Oscillator [AO] too reiterated the bullish narrative in the near term for the asset’s price action.

Solana which is regarded for its speed and security has another reason to cheer. One of its fastest-growing wallets built for decentralized finance [DeFi] and nonfungible tokens [NFT] known as Phantom has seen incredible growth in 2021 with 1.8 million monthly active users in a span of 9 months. Apart from that in 2021, its users have staked over $16 billion worth of SOL, swapped over $1.3bliion of tokens, and made over 55 million transactions on their favorite dApps or centralized applications.