Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
โ Solana rallied well in January, but the bulls could not keep up the pressure.
โ Repeated grid outages could scare off investors.
Despite all the turmoil Solarium seen in the last six months, it remains one of the top 10 assets by market capitalization in the crypto sphere. This says a lot about the confidence of investors and holders in Solana, nicknamed the โEthereal killerโ by some of its most passionate users.
This was well reflected on the price charts. Going into 2023, SOL was hovering around the $10 support zone. It was already in the grip of a downtrend dating back to November 2021, when SOL was trading at $200. Just as investors began to anticipate more losses in the crypto market in January, Bitcoin it started to rally past $17k and changed the short-term sentiment to bullish.
Solana benefited greatly from this change and posted 175% gains in 21 days. However, she was unable to break the $26-$28 resistance zone, which has acted as support since June-November 2022.
Read from Solana [SOL] price prediction 2023-24
The most bullish scenario of 2023, according to the AMBCrypto prediction bot, could see SOL valued at $75.5. However, we can ask another bot for feedback on Solana's price, network health, and trajectory after giving it some relevant data points.
Can we persuade ChatGPT to predict Solana's price if we give it enough information?
ChatGPT has been a remarkable chatbot and the updates in the last month have made ChatGPT 4.0 quite impressive. He is a powerful tool for learning and has been trained on a wide range of topics. However, it must be said that the bot is designed to mimic a human and is not necessarily guaranteed to be factually accurate. The jailbroken version of ChatGPT is probably even more inaccurate, as it is specifically told not to say no to anything the user requests.
And yet, it is possible to get some guesswork out of the chatbot about what the future might hold by giving it some insight into what the present and recent past have been like.
So what does Solana's ChatGPT do? Do you see a path to recovery after your recent setbacks? Based on transaction fees and transaction speeds, ChatGPT seems to think that Solana will be an Ethereum killer.
Source: OpenAI
We have yet to inform you of the challenges that Solana and SOL investors have faced in recent months. Let's start with the biggest dent in investor confidence:
FTX, where the free fall began
Sam Bankman-Fried was one of the most vocal supporters of the Solana network. He was seen as a credible and savvy investor and businessman who was the CEO of one of the largest crypto exchanges, FTX. Even though Binance reigned supreme in terms of volume and token pairs, FTX was competing for its money. Competition is also good for the industry and serves customers.
A lot has changed since then, with the SEC accusing Mr. Bankman-Fried of defrauding FTX's equity investors, further alleging that he commingled FTX client funds with those of Alameda to make undisclosed venture investments. He faces more than 100 years in jail if he is found guilty on all counts.
Not only has Solana's reputation been affected, but the foundation has also sold a significant amount of SOL to FTX Trading and Alameda Research. This amounted to 58.08 million SOL, or 11% of the circulating supply at the time FTX filed for bankruptcy. It was valued at close to $1.1 billion at the time.
Unsurprisingly, the price of the Solana plunged in November and decreased 45% from November 11 to December 31, going from $18.08 to $8. With rumors of FTX's insolvency circulating since November 5, SOL had already lost 50% the week before, when it was trading near the $38 mark. This brought SOL's total losses from November 5, 2022 to December 31, 2022 to 79.4%.
Source: OpenAI
ChatGPT certainly sounds bullish, and early 2023 went extraordinarily well for investors. And yet some network issues arose, just as they did in 2022.
SOL gained 180% in January and February 2023, exceeding all expectations
From January 1 to February 20, Solana gained 179.88% on the price charts and rose from $9.69 to $27.12. This explosive rally has been partially attributed to Bonk, a meme coin introduced into the Solana ecosystem on the model of the Shiba Inu. A portion of the total supply of 99 billion was airdropped into the wallets of Solana users in December. He transaction count per day it had been on a downward trend in the second half of December, but this began to change in early January.
Is your wallet green? check the Solana Earnings Calculator
Soon enough, transactions sped up once more. The introduction of the amusing meme coin was reported to have done much to move the community away from the dark and depressing shadow that the FTX debacle had cast over Solana.
When fed with on-chain data, as well as price action in recent months, the jailbroken version of ChatGPT was able to gather an opinion on how Solana will perform in Q2 2023.
Source: OpenAI
The network has faced troublesome outages in recent months and investor confidence is likely to take a hit. The chat bot agreed.
Source: OpenAI
When forced to guess Solana's price in June, he said:
Source: OpenAI
The $25 prediction might not be too far off in the coming weeks, especially if Bitcoin bulls can push BTC above the $29.2k mark. Predictions and guesswork aside, what does the price analysis tell us about Solana?
Some imbalances persist in the south
Source: TradingView
SOL has lost more than 14% of its value since the beginning of the week. At the time of writing, the token was trading at $22.07, a drop of more than 2% in the last 24 hours.
The bearish move has led to a sizeable decline in SOL's market capitalization, bringing it down to $8.66 billion. Support and resistance zones remain intact at $26 and $19 respectively. There was an attempt to break said support zone earlier this week, but the bears defended that price level.
The current reading of the Relative Strength Index (RSI) indicates that SOL is neither overbought nor oversold, making it difficult to predict future price action for the token.
On Balance Volume (OBV), at press time, was at -12.8 million, indicating negative volume pressure that may herald lower prices in the near future.
According to data from Coinglass, open interest on SOL futures decreased by 1.98% over the past 24 hours. Meanwhile, the token has liquidated nearly $2.5 million over the same period.
Despite massive setbacks, development on multiple fronts like Solana Saga, the NFT market, and partnerships have continued unabated.
In hindsight, the past few months could have been one huge New Year's sale at SOL. However, investors should temper their expectations as a cryptocurrency bull market is not in sight yet.
