The price of Solana (SOL), which increased by about 120% in December, was one of the best performers. The spike strengthened the cryptocurrency’s standing and elevated SOL above its competitor, Ethereum (ETH). Anatoly Yakovenko, the founder of Solana, came out to end discussions about SOL vs. Ether because of the remarkable spike.
XRP loses to SOL on the HKVAC list.
The Hong Kong Virtual Asset Consortium (HKVAC), which rates cryptocurrency market indices and digital asset trading platforms, announced in a recent news release that SOL has taken the place of XRP on its worldwide index of the top five cryptocurrencies.
The HKVAC states that the number of constituent assets will remain at five. The change was made after Solana avoided XRP, which rose to the sixth spot on the list of cryptocurrencies based on market capitalization, and instead took the fifth spot.
In the meantime, Hong Kong’s initiatives to support the cryptocurrency sector in the area have not gone unnoticed. In December, the nation’s financial authority announced that it was getting ready to accept spot cryptocurrency exchange-traded funds (ETFs). This occurred while the spot BTC ETFs that were approved last week were being examined by the US Securities and Exchange Commission (SEC).
According to recent reports, the industry leaders in Hong Kong are also requesting that regulators allow spot BTC ETFs of their own.
Mao Shixing, also known as “Discus Fish,” co-founded and serves as CEO of digital asset custodian Cobo. He stated that in order for Hong Kong to be competitive in the global bitcoin market, spot virtual asset exchange-traded funds (ETFs) must be introduced as soon as feasible.
Prospects for Solana prices as SOL rises on the HKVAC list
The price of solana is still rising and has stabilized inside an ascending parallel channel, despite recent corrections. More profits could be realized from this bullish technical pattern if SOL stays inside its boundaries.
Technically speaking, the Relative Strength Index (RSI) is rising, indicating stronger buying power. If the trajectory of the RSI is maintained, it could soon cross above the signal line (yellow band), with the crossover viewed as a buy signal. Traders heeding this call could supercharge the upside potential for the Solana price, propelling it over the midpoint of the channel above the $100.00 psychological threshold.
In a very bullish scenario, the Solana price can recover to the range high at $126.36 or perhaps peg the resistance level at $112.38. This would represent a 30% increase over the present levels.
On the other hand, bears are holding onto SOL because the Awesome Oscillator (AO) histogram bars are moving southward. The nose-diving Moving Average Convergence Divergence (MACD) indicator, which crossed below the signal line (orange band) in late December, emphasizes this by continuing to move below it.
In order to gather the buy-side liquidity that is resting underneath, the Solana price may lose its immediate support at $89.02 if profit takers get their way. In the worst scenario, the decline may reach the $68.03 support floor, which is 30% below the present levels.