Solana price held support above $20 against all odds and against the backdrop of FTX’s implosion, which threatened the survival of the ecosystem.
In just three weeks, the value of SOL has increased by more than 150% to trade at $24.56. The smart contracts token hit a new high of $26.53 in 2023, but pulled back, possibly because investors are cashing in for profit.
Assessing the long-term upside potential of Solana’s price in 2023
Solana price needs to secure higher support, preferably at $24.00 to give the bulls time to build momentum for subsequent moves higher. Interim support levels may be provided by the accelerated rising trendline tested at the confluence with the 50-day exponential moving average (EMA) (in red) around $23.22.
If the sellers become aggressive, Solana price will turn to the main uptrend line and the next buyer congestion zone at $20.00. Traders looking for long positions in the SOL price should proceed with caution, keeping in mind that the Moving Average Convergence Divergence (MACD) indicator is currently presenting a sell signal.
If investors heed the call to lock in profits, Solana’s price will first drop to $20.00 before bouncing back for a fresh attack on seller congestion at $26.00 and $30.00. The ongoing pullback may not last long as the Money Flow Index (MFI) indicator is back above the midline (50.00) and may approach the overbought region, paving the way for more short-term gains.
Solana’s upward price trend appears to be intact on the daily time frame chart but facing resistance at $26.00. The downtrend line and 200-day EMA (in purple) at $30.00 also cap the upside move.
The Moving Average Convergence Divergence (MACD) indicator maintains a buy signal that may call for more buyers in the SOL markets. As investors take their positions in the market, momentum will not only build for a break above $30.00, but towards $100.
On the downside, the daily chart reinforcers support at $20.00 with the 100-day EMA (in blue). A rebound from this level could be the boost Solana price needs to trigger another rally.
Can Solana’s price reach all-time highs in 2023?
Solana’s price tends to rally even when the cryptocurrency market is down. Despite the crash of 2022 – compounded by the collapse of Sam Bankman-Fried’s FTX exchange, Solana still has a vibrant community and ecosystem of smart contract apps and tokens thriving in their capabilities.
At the end of December, Vitalik Buterin recognized the Solana ecosystem and the developers that make it up. In the support post, the famed developer said it’s time for Solana to thrive – now that “opportunistic money people have been weeded out.” Buterin was referring to people in organizations like FTX who for a long time controlled the liquidity of the entire network.
“Some smart people tell me that there is a community of serious smart developers in Solana, and now that the horrible opportunistic money has been washed away, the channel has a bright future.”
“Hard for me to tell from the outside, but hopefully the community gets its fair chance to thrive.”
The Solana ecosystem has always been dynamic and zealous to succeed in becoming a true “Ethereum Killer”. The frequent network outages appear to have been completely resolved following a series of upgrades in Q3 2023. It has been almost four months since the Solana blockchain went offline.
According to a leading crypto analyst on TradingView as “Richbust9”, for Solana’s price to start trending towards its all-time high, it must successfully overcome three key hurdles, including resistance at $40, $80 and $100.
“There are 3 big obstacles of resistance that Solana must break. $40 zone $80 zone and finally $100 zone. In order to reach this high, the bulls should need to go sideways up and back down. It won’t be easy as the Fed continues to raise rates and inflation remains high.
Let’s face it, the bull market is yet to be confirmed and will heavily depend on the US Federal Reserve’s decisions on interest rates over the next few months. The first review in 2013 is scheduled for the middle of next week. In addition, it is likely that interest rate hikes will bring inflation under control. Therefore, investors need to manage their expectations going forward.
Alternatives to Solana
If you’re looking for other high-potential crypto projects alongside SOL, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Discussion Team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features information from crypto industry players and is not part of the editorial content of Cryptonews.com.