Solana price recovers as the wider market continues to correct. Cointelegraph explains why.
Solana's (SOL) token encountered robust resistance at $102 on Jan. 17 and was followed by a 23% correction to a 5-week low at $78.60 on Jan. 23. However, the movement reversed as SOL rebounded by 10% in less than 24 hours and put a temporary end to the bearish price action. Traders now question whether the recovery was backed by solid fundamentals and whether or not SOL can push back above $90.
Part of the movement can be attributed to the recently launched 'token extensions' on the Solana network, which allow confidential transfers to hide balances, transfer hooks for gated access, and the ability to charge fees at the protocol level. These updates were included in the v.1.17 release of the Solana Labs validator client announced on Jan. 19. The plug-and-play functionalities are designed for enterprise applications and regulator-friendly resources.
Another source of optimism comes from Firedancer, a promising new third-party validator client currently under development. Developed by Jump Crypto, this solution aims to increase Solana’s processing capabilities toward millions of transactions per second and provide support for parallel processing (sharding).
