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Solana in 2022
Solana was founded in 2017 and has been experiencing steady growth since that time, it has been referred to as a dangerous rival to stronger cryptocurrencies, particularly Ethereum, as we have already mentioned in the introductive paper about Solana.
Solana achieved great results in a short period of time; however, 2022 saw a sharp decline and it was perhaps the most affected cryptocurrency by the collapse of FTX, for a multitude of reasons, first and foremost its connection to the exchange in question.
By the end of 2022, Solana had collapsed by over 90%.
Solana recovery
In the early stage of 2023, there has been a general recovery regarding the crypto market.
Solana also seems to be indicating the beginning of a new upswing: it recorded an 80% recovery in January and finally broke through the 20 USD barrier.
In the month of January, the price of the SOL token increased; at the end of 2022 the price recorded was around 10 dollars, and at the end of the first month of 2023 it was 24 dollars.
In February, a process of stabilisation of the price around the 20 USD level seems to have begun. SOL’s price is still far from what it was before the FTX crash, but the overall market conditions bode well for further growth and expansion.
SOLUSDT chart by TradingView
Key strengths of Solana
Recent news regarding the first signs of recovery make expectations more positive, but it will have to be seen over the long term whether the price of the token will continue to rise or stabilise.
However, there are special features of Solana that should not be underestimated and should be taken into account. In fact, these may be key elements in the recovery of Solana’s value.
Ecosystem development: Solana’s popularity continues to grow, and it is becoming the building basis for various decentralised projects and applications. The increase in notoriety, and thus attention, has the potential to attract more investment and increased demand, which would drive the price of the token to new heights.
Technological efficiency: Solana has been known from the start for its speed and scalability. Its proof-of-history mechanism allows for quick transactions and lower cost, and in addition, allows for more transactions to be handled at the same time. This is another advantage that sets it apart from other ecosystems and could attract users and investors.
Technical Analysis
Making a straightforward technical analysis of Solana, with reference to the chart below, denotes a long bearish phase that started at the end of November 2022.
Right now it is testing strong resistance in the 22-25 area; if this is broken, with significant volumes to support it, it would be an excellent sign of recovery.
A real reversal of the trend would take place around the 50 USD value area, thus observing rising high and low points, confirming the change.
We must wait to see if the upper part of the channel (green bands) will act as support to continue the uptrend or not. The areas of greatest interest remain on the downside around 10 USD value and on the upside around 25-30 USD value.
Solana 2023 outlook
Solana’s future price trend is very difficult to forecast now, there are many possible scenarios to consider because it strongly depends on the overall market’s development.
Analysts predict that SOL has the potential to achieve new heights, also because of the features mentioned before, that make it one of the best altcoins in the crypto market, but still maintaining a range between 30 and 40 USD during 2023.
Considering a positive scenario, if the market continues its upward trend, it can be assumed Solana will keep growing. This growth will increase the demand, pushing the value up to 40 USD by the end of 2023. Another potential growth factor is the expansion of the Solana ecosystem and technological innovations brought to the crypto world, which could raise the value of SOL to around 70 USD within two years.
Conversely, if the market experiences a sharp decline or suffers further shocks, it would be difficult for SOL to break out of the 15-20$ range. The market is currently at a turning point, so it is difficult to predict which of these scenarios will occur.
