- Solana’s price strength and impressive December performance lead to its elevation over XRP in the Hong Kong Virtual Asset Consortium’s top five global crypto index.
- Despite a bullish outlook, caution is advised as technical indicators suggest potential bearish pressure, with Solana’s price at risk of dipping below crucial support levels.
Solana (SOL) has emerged as the cryptocurrency to watch after a stellar performance in December, securing its position as a top performer in the crypto market. The surge, catapulting SOL nearly 120% within the month, has not only heightened its rivalry with Ethereum (ETH) but also earned it a prestigious spot on the Hong Kong Virtual Asset Consortium’s (HKVAC) top five global crypto index.
In a strategic move, the HKVAC decided to replace XRP with SOL, citing the latter’s outstanding performance. This decision comes as Solana successfully claimed the fifth position in the list of cryptocurrencies by market capitalization, pushing XRP to the sixth spot. The consortium, responsible for rating digital asset trading platforms and crypto market indexes, emphasized that the number of constituent assets in its top five list would remain constant.
The move by HKVAC aligns with Hong Kong’s broader efforts to bolster its crypto industry. In December, the country’s financial regulator expressed readiness to welcome spot crypto exchange-traded funds (ETFs). This initiative follows the recent approval of spot BTC ETFs by the US Securities & Exchange Commission (SEC). Industry leaders in Hong Kong are now advocating for their own spot BTC ETFs, urging regulators to swiftly approve them to maintain competitiveness in the global cryptocurrency market.
Despite recent corrections in the crypto market, Solana’s outlook remains bullish. The cryptocurrency has consolidated within an ascending parallel channel, and technical indicators suggest a positive trajectory. The Relative Strength Index (RSI) is on the rise, indicating increasing buying strength. Traders closely watching this signal may catalyze further gains for Solana.
In a highly bullish scenario, Solana’s price could surpass the $100.00 psychological level, targeting the $112.38 resistance level or potentially reaching the range high at $126.36, reflecting a remarkable 30% climb from current levels.
However, caution is advised as bears exert pressure on SOL. The Awesome Oscillator (AO) and Moving Average Convergence Divergence (MACD) indicators show signs of a bearish trend. If profit-taking intensifies, Solana’s price may dip below the immediate support at $89.02, potentially extending to the $68.03 support floor, representing a 30% decline.
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