Solana Co-founder Calls for Crypto Innovation as SOL Price Struggles Near $20
TL; DR
In September the Solana crypto broke above the $18 resistance level and is currently trading around $20.
Solana maintains a neutral stance despite the possibility of liquidation of FTX held SOL tokens.
Experts predict the Solana price to rise during the last quarter of 2023.
Introduction
The current state of the crypto market shows that we still have a long way to go for the market to attain a full recovery. This is because the prices of most cryptocurrencies including that of Bitcoin, ETH and Solana are way below their all-time highs. This analysis will cover the current Solana price movement and its near-future prospect.
Solana Price Performance
For the greater part of September 2023, the Solana price was fluctuating within a small range between $18.92 and $20.40. This was in line with the performance of most crypto assets whose prices moved sideways within small channels.
Most of the time the SOL price was above $18, one of its recent key support levels. It managed to slip below that value for short periods. Solana’s weekly time frame chart for the third week of September indicated a bearish moment for the digital asset as the following diagram shows.
Solana Price Performance - TradingView
As the image shows, Solana is in a downward trend which has created two major permutations, a possibility of a further fall or an upward price reversal. The bounce that appears at the end of The Graph consolidates the $18 support zone.
Depending on the nature of the bullish momentum which the bounce generates there is a likelihood of further gains. For instance, if the price increases by 45% it may reach $28 within the near future.
However, there is a possibility of a downward Solana crypto price fall. As an example, if it falls by 30% the investors can buy SOL at $14 where we find a descending resistance line. However, during the third week of September the relative strength index (RSI) indicated a high possibility of a SOL price rise that could lure investors to buy Solana.
Basically, the RSI indicator shows when the market is in an overbought or oversold state. In the case of SOL, it helps Solana holders to decide whether to buy SOL or to sell it. If the reading of RSI, a momentum indicator, is above 50 and it is in an uptrend position it means the crypto asset is bullish and its holders may sell.
During the period under consideration, the RSI indicator showed that Solana was bullish. Definitely, a move above 50 confirmed that the Solana price may rise towards $28. On the contrary, if the RSI reading falls below 50 it indicates that the SOL price momentum is weakening. Therefore, the Solana holders might need to sell their tokens.
It is important to note that the Solana daily chart for the period that stretched from 25 to 26 September 2023 showed a bullish momentum. There are several moves that confirmed Solana’s bullish stance. First, on 11 September Solana bounced on the $18 horizontal area which validated that long term support line.
Nonetheless, on 18 September the SOL price broke out of the descending wedge which is a bullish pattern. That breakout could have catalysed the beginning of a new Solana crypto price upward movement. At the same time, the daily RSI broke out of its descending resistance line as the next diagram shows.
Sol Price Chart - TradingView
In the above diagram, you can see that the daily RSI broke out of its descending resistance area which the green line demarcates.
A Word from Solana Founder: America should Promote Crypto Innovation
Despite Sol price struggling to maintain a strong bullish momentum, the Solana crypto co-founder Anatoly Yakovenko has called on the United States to promote innovation in web3 through adopting clear crypto regulations.
He said that without a clear regulatory framework, many entrepreneurs are forced to leave the United States and establish their projects in other crypto-friendly countries. Yakovenko clarified his point by saying, “To keep the next great American founder in America, Congress must regulate crypto. But first lawmakers should learn how it works.”
Solana Price Analysis for Quarter 3, 2023
Solana crypto is one of the cryptocurrencies that has been very volatile since its launch in September 2021. However, at the start the Solana price rose by around 12,000% within one year to a value of about $259.96 in September 2022. The growing popularity of NFTs on the Solana blockchain led to that Solana price spike.
However, the SOL price plunged by around 40% in a single day in November 2022 after FTX crypto exchange declared bankruptcy. But, once again the SOL price increased by around 100% within the first three months of 2023. Sadly, on 11 June its value dropped by 30% after the SEC announced that it was crypto security.
Currently, the direction in which the SOL price will go is not very clear considering that the FTX exchange is planning to liquidate SOL tokens worth about $1.16 billion which is likely to generate high selling pressure.
Despite Solana price struggling, its value may increase during the rest of 2023. The major reason for that is the rise in institutional interest in the token. For example, when Shopify partnered Solana the SOL price spiked by 5% which indicated its potential growth.
Also, the blockchain’s dominance in the NFT space continues to attract more Solana investors and users, which may create more bullish pressure. As we speak, investors can buy Solana at $20.17 as the next graph indicates.
Solana Price Movement - CoinGecko
The above graph shows that the Solana investors can buy SOL at $20.17. It also indicates a current bullish momentum. According to present estimates, the Solana price may reach $48.07 by the end of 2023 as the next table indicates.
Solana Price Prediction for 2023 and 2024
The anticipated SOL average price for 2023 is $33.93. Now, time will prove whether or not the Solana price will reach $45.84 by the end of October, $47.18 in November and $48.07 in December.
Analysts believe that the SOL price will continue to rise in 2024, ranging between $40.90 and $58.87 in the course of the year. The expected average price for SOL in 2024 is $49.88.
Read also: SOL price predictions 2023-2030
Looking at the SOL price trajectory in the past and its expected future movements it is clear that it is a good investment asset. Again, the fact that it is a utility token that supports several products like NFTs makes it a worthwhile investment asset. Therefore, more investors are likely to buy SOL in the future. On the other hand, the current Solana holders can increase their holdings.
Conclusion
The value of Solana is fluctuating between $18 and $20.40. Currently, both the short term and long term charts are showing that Solana crypto is bullish. Crypto experts think that the SOL price may reach $48.07 in December 2023 and $58.87 in 2024.
