Solana (SOL) has been in a positive mood since January 24, 2024, rising from $83.25 to a high of $143.
The current price of SOL stands at $130, and for now, bulls continue to control the price movement. This positive trend is supported by Bitcoin’s ascent beyond $69,000 and its ambitious aim to reach the target of $70,000.
Solana’s standout performance adds a notable dimension to the current positive sentiment prevailing in the cryptocurrency space but investors should also keep in mind that investing in SOL involves a significant degree of unpredictability and substantial risk. But where is the price of Solana (SOL) going next, and what can we expect from the rest of November 2023?
Today, Crypto Lists will discuss SOL price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Interest in Solana and others sees steep decline
- 2 Binance announces temporary suspension of withdrawals on Solana
- 3 Technical analysis for Solana (SOL)
- 4 Important support & resistance levels for Solana (SOL)
- 5 What speaks for the rise in the Solana (SOL) price
- 6 What indicates the downfall of Solana (SOL)
- 7 What do analysts and experts say?
Interest in Solana and others sees steep decline
Solana is one the most performant blockchains in the world that is designed to keep fees low for applications with billions of users. The usual cost for each transaction hovers around $0.00025 and according to its official website, Solana boasts the ability to execute 50,000 transactions per second. Solana employs a distinctive consensus mechanism known as “Proof of History” (PoH), enabling it to effectively manage growing transaction volumes without compromising on performance.
Like Ethereum, Solana supports smart contracts, empowering developers to construct decentralized applications (DApps) and implement tailored programmable logic on the blockchain. Various applications within the Solana ecosystem have experienced expansion, encompassing decentralized exchanges, stablecoins, NFT (non-fungible token) platforms, and more.
SOL serves as the utility token within the Solana network, and it is used for staking, covering transaction fees, engaging in governance decisions, and providing incentives to validators to ensure network maintenance. Since the beginning of February 2024, the value of SOL has increased by more than 50%, rising as high as $143 on March 05. This positive trend is supported by Bitcoin’s ascent beyond $69,000 but according to data from the analytics firm Santiment, the Open Interest of Solana and other cryptocurrencies has seen a steep decline since Bitcoin has set its new all-time high.
The term “Open Interest” in this context denotes the cumulative value of derivative contracts (such as futures and options) for a specific cryptocurrency that is presently active across all exchanges. It is important to say that when the value of this metric goes up, it means that traders are opening up fresh derivative positions. On the other hand, a decrease in the indicator implies either the holders are closing up their positions of their own volition or are getting liquidated by their platform. This kind of trend may lead toward more stable price action for the coin, assuming that leverage goes down alongside this decrease.
Supply: 307,782,016 / 511,216,000
Release date: April 10, 2019
Description: Discover Solana and be part of the cryptocurrency revolution.
Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.
Binance announces temporary suspension of withdrawals on Solana
Analytics firm Santiment reported this Wednesday that as a result of the rapid price movements observed in the market over the past day, Bitcoin, Ethereum, and Solana have all experienced a significant decrease in this metric. To be more specific, Bitcoin has witnessed a decrease in its Open Interest by approximately $1.42 billion, reflecting a change of -12%. Ethereum has experienced a drop of $967 million (-15%), and Solana has seen a decrease of $424 million (-20%).
At the same time, Binance, one of the world’s leading crypto exchanges, declared this week a temporary halt on withdrawals via the Solana network. Binance has identified various optimization prospects within the Solana network and is actively pursuing a stable, enduring solution. The projected resolution date is March 9, 2024, but the temporary suspension has sparked many reactions and speculation regarding the immediate impact on Solana’s price.
Because of all of this, investors should have to be careful in the case of this cryptocurrency and it is essential to exercise caution when navigating the highly volatile cryptocurrency market. Factors like market sentiment, international occurrences, and regulatory changes wield substantial influence over the prospective price fluctuations of SOL and other cryptocurrencies.
Technical analysis for Solana (SOL)
Solana (SOL) has advanced from $92.44 to $143 since the beginning of February 2024, and the current price stands at $130. Despite the current correction, bulls continue to control the price movement and as long the price of SOL is above the trendline which I drow on the chart below, this crypto remains in the BUY-ZONE.
Important support & resistance levels for Solana (SOL)
On this chart (the period from November 2023), I marked important support and resistance levels that can help traders understand where the price could move. According to technical analysis, bulls control the price movement of SOL for now, and if the price advances again above $140, the next target could be resistance that stands at $150.
The important support level is $120, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $100. If the price drops below $100, which also represents strong support, the next target could be located around $80.
What speaks for the rise in the Solana (SOL) price
The important reason for SOL’s current price surge is that it has been following the growth of Bitcoin, just like the rest of the cryptocurrency market. For the bulls to remain the control of price movement, a move above $150 would be beneficial.
Moreover, the increase in developer activity on Solana is certainly positive for SOL price and according to Austin Federa, the Solana Foundation’s head of strategy, a huge number of projects on Ethereum want to move over to Solana. At the same time, the speculation about Solana releasing a highly successful app in sectors like SocialFi, DePIN, or gaming could significantly increase Solana’s user base and investment influx.
What indicates the downfall of Solana (SOL)
The downfall of Solana (SOL) can be influenced by a wide range of factors, including market sentiment, regulatory developments, technological advancements, macroeconomic trends, and more.
SOL whales increased their activity over the past several weeks, which demonstrates renewed interest and confidence in SOL. But, investors should keep in mind that cryptocurrency markets are notoriously volatile, and while positive developments can trigger substantial price increases, they also carry potential risks. SOL is unpredictable and a highly risky investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency.
The important support level for SOL stands at $120, and if the price falls below this level, the next target could be $110 or even strong support at $100.
What do analysts and experts say?
Solana (SOL) has been in a positive mood since January 24, 2024, but according to data from the analytics firm Santiment, the Open Interest of Solana and other cryptocurrencies has seen a steep decline since Bitcoin has set its new all-time high. It is important to say that when the value of this metric goes down, it means that traders are closing their positions.
At the same time, Binance, one of the world’s leading crypto exchanges, declared this week a temporary halt on withdrawals via the Solana network which could also have a negative impact on the SOL in the days ahead. On the other side, some crypto analysts that Solana could perform way better than Ethereum, as it is seeing “meaningful usage and growth in developer activity” and they predict new highs for this cryptocurrency.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.
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