Besides being impacted by the overall market bearish sentiment, Solana (SOL) took a significant hit from the FTX cryptocurrency exchange collapse, considering the digital asset’s close ties to the trading platform. Indeed, SOL has enjoyed backing from Sam Bankman-Fried (SBF), and with fraud allegations labeled against the FTX founder, the decentralized finance (DeFi) token experienced intense selling pressure.
As the year comes to an end with no significant triggers for a rally on the horizon for Solana, the focus has shifted to how SOL will begin 2023 at a point the network is recording increased development activity.
In this line, the machine learning-based algorithms at PricePredictions that put into consideration metrics like moving average (MA), relative strength index (RSI), moving average convergence divergence (MACD), and Bollinger Bands (BB), among others, indicate that SOL is in line to sustain a consolidation momentum on the first day of 2023.
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According to the prediction, Solana will trade at $11.76 on January 1, 2023. The price represents a minimal movement from the token’s value at the time of publishing of $11.91. Per the forecast, Solana will extend its sell-off experienced in December with a correction of about 13%.
Interestingly, as reported by Finbold, the crypto community on CoinMarketCap had projected that Solana was likely to usher in 2023 on a bullish note. In particular, votes from 1,118 community members projected that SOL would likely trade at an average value of $28.85 on December 31.
Solana price analysis
By press time, Solana was trading at $11.91 with daily corrections of about 1.60%, while on the weekly chart, SOL has been dominated by bearish sentiment losing its valuation by over 11%.
In general, over the recent weeks, Solana has gained massive negative momentum. Indeed, after the bears took over the asset, SOL dropped below the crucial $12.00 level that now acts as a resistance position. However, bulls need to find their footing and stabilize the price to avoid further correction.
Elsewhere, SOL’s 1-day technical analysis summary is in the ‘sell’ position at 14, while moving averages are for a ‘strong sell’ at 13. Oscillators are for the ‘buy’ sentiment at 3.
What next for Solana
The Solana community will be relying on the network’s ongoing developments to compete with platforms like Ethereum (ETH) to trigger a possible rally. However, at the moment, network development has minimal impact on the asset, with SOL’s movement heavily leaning toward trends in the general market.
At the same time, the impact of development activities continues to be under threat with significant network outages. Meanwhile, the community will keenly follow proceedings from the SBF case, considering the close ties between the two entities.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
