It was an explosive month for SOL, which powers Solana’s high-performance Layer-1 blockchain protocol. The cryptocurrency was up about 145% in the last trading volume during the month in the mid-$24.00s, and fell more than 200% to below $8.00 per token at the end of December 2022.
December was a terrible month for the price of Solana, as investors continue to throw tokens at the risk that the fraud cryptocurrency exchange FTX will cause the “death” of the ecosystem and the cryptocurrency.
But Solana has a decentralized ecosystem of support and applications, struggling in the wake of the FTX collapse and draining all the liquidity it had to offer, which continues to support the Solana project. As discussed in this recent article, various metrics suggest that activity in the Solana ecosystem remains strong after the FTX collapse – far from a dying ecosystem.
This, alongside the broader cryptocurrency market rally that took place in January, was fueled by a combination of macro tailwinds and optimism that Bitcoin could bottom, which has fueled this month’s strong rally. And Solana’s techniques look good.
Solana looks good technically
The 21, 50 and 100-day moving averages of the cryptocurrency managed to recover to the north and now it seems to have established a bullish trend channel. That indicates that the recent technical outlook is up.
SOL/USD has yet to break north of resistance around $26.0. Selling before the 200DMA may be partially responsible. But buying pressure seems to be building ahead of this key resistance area. A break above $26 could open the door for a quick rally to the next key resistance area in the high $30s.
Crypto traders predict Solana’s outlook.
A popular crypto analyst on TradingView by the name of ‘Richbust9’ said traders should consider buying SOL before it falls above $26.00 because “it’s very sharp”. The best buying range would be $20.00 to $26.00, the analyst said.
The analysts think SOL has a shot at recovering to record highs in the long term, but “there are big 3 resistance barriers that Solana needs to break.” These include the “40$ zone, the 80$ zone and the final 100$ zone”. “It won’t be easy as the Fed is still raising rates and inflation is high,” Richbust9 warns.
According to Cryptonews.com analyst John Essige, “In The Crash of 2022 – Exacerbated by the collapse of the Sam Bankman-Fried FTX exchange, Solana still has an active community and ecosystem of applications, and smart contracts are rich in potential. He said.
Meanwhile, “it appears that frequent network outages following a series of updates in Q3 2023 have been fully resolved,” Esige explained, adding that “it’s been almost four months since the Solana blockchain went offline.”
Others, including Ethereum founder Vitalik Buterin, praised Solana’s community. “Some smart people are telling me that there’s a really smart developer community in Solana, and the chain is optimistic because the bad luck money has been washed away,” he said earlier, referring to FTX’s massive impact on Solana’s ecosystem. The collapse of the cryptocurrency exchange in November.
Is it too late to buy Solana?
Asking if it’s too late to buy a property is never the right question. The answer is always never. The real question is whether property should be purchased or not. And that depends on how an investor evaluates his long-term price performance outlook.
If you think, based on your own research, that SOL is likely to increase significantly in value right now, it’s probably worth buying some. If not, then stay away.
Along with SOL, if you’re looking for other top potential crypto projects, we’ve reviewed the top 15 cryptocurrencies for 2023, at Crypto News Industry talk group.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not part of the editorial content of Cryptonews.com.