It has been an explosive month for SOL cryptocurrency, which provides the high performance of the Solana first-level blockchain protocol. So far, the value of the token has risen 145%, stopping at $23.75. This is an impressive result compared to December’s $8.0 per token.
December really wasn’t the most successful for Solana. Even though the current situation has greatly improved, traders are still not too optimistic about the token. The fact is that FTX, a crypto exchange that closed in November, was one of the main supporting elements in Solana ecosystem. There are concerns that this dependence could lead to the fading of the project and its cryptocurrency.
However, Solana has a decentralized support ecosystem. Even after the FTX collapse, the project remains resilient and has no plans to decline in value.
This, along with the rapid rally of the crypto market, where Bitcoin also managed to avoid the final fall, makes the outlook for Solara very positive. Their ecosystem is successfully coping with market pressure.
Solana technical analysis shows good results
As of today, SOL token shows a bullish trend. This suggests that the short-term technical analysis shows good results.
SOL/USD has not yet managed to break through to the resistance level of $26.00. But it seems that in the near future, the growing interest in buying the token will raise its resistance zone as well. A break above $26.00 could open the door to a quick rally, and hence the next key resistance indicator all the way to $30.00.
Cryptotraders predict Solana’s prospects
According to TradingView’s top crypto analyst nicknamed Richbust9, traders should consider buying SOL before reaching the $26.00 mark. The analyst predicts that the best time to buy is in the $20 to $26 range.
The analyst believes that SOL is well positioned to break its own records in the very near term. However, it is noted that there are three big obstacles that Solana still has to overcome. These could include the $40 zone and the $80 zone, and in the final stage, the $100 zone.
“These will not be easy marks because of external government pressure on cryptocurrencies as well as high inflation,” Richbust9 warns.
According to Cryptonews.com analyst John Ishige, “Despite the collapse of the FTX crypto exchange, Solana still has an engaged community of traders and an app ecosystem, as well as smart-contract tokens, which will allow it to reach its full potential.”
Meanwhile, “problems with frequent network outages seem to have been fully resolved after an upgrade scheduled through the third quarter of 2023,” Ishige notes. He adds that it has been four months since Solana last went offline.
Vitalik Buterin also praised Solana’s community.
“Some smart people tell me that Solana has a great development team, and now that fraudulent money isn’t getting their name dirty, this blockchain has a bright future ahead,” he said, referring to FTX’s huge impact on the Solana ecosystem before the cryptocurrency collapse in November.
Is it too late to buy Solana?
The answer is that it’s never too late. The main task is to determine the profitable values of the token to buy, as well as to assess one’s long-term price forecasts competently.