Cryptocurrency investors have had plenty to be pleased about in 2023. Bitcoin bounced from last year’s lows, and this momentum has been replicated across many other major crypto assets. Solana is no exception, with its price more than doubling over the course of the year.
However, the market failed to build on the bullish trend after surpassing the $26 mark in January, instead entering into a consolidation phase. To assess the market sentiment, it is necessary to look at the bigger picture. The horizontal resistance level is one of the key levels to watch. Unless the price moves below the lows of 2022, a bullish outlook remains in place.
Solana chart by TradingView
If the price can break above the horizontal resistance, this could open up the potential for further gains. This could be bolstered by a weakening US dollar, which has seen mixed trading so far in 2023. With the Fed on pause, renewed weakness in the dollar could benefit cryptocurrencies such as Solana, potentially pushing its price above $40.
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