Like many other cryptocurrencies, Solana (SOL) remains under pressure after Bitcoin recently hit a fresh two-month low after a wave of risk aversion swept through world markets.
Solana (SOL) has weakened more than 20% since August 15, 2023, falling from $25.39 to a low of $19.29. The current price of SOL stands at $20.30, and bears continue to control the price movement.
It is also important to say that Solana (SOL) has been moving down since March 2022, and investors should keep in mind that the effect of the 2022 crypto price crash, U.S. inflation growth, and interest rate hikes haven’t diminished from the market yet.
But where is the price of Solana (SOL) going next, and what can we expect from September 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 Solana is designed to keep fees low
- 2 Solana and Shopify announced integration
- 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?
Solana is designed to keep fees low
Solana is one the most popular blockchains in the world that is designed to keep fees low for applications with billions of users. The average fee per transaction is around $0.00025, and according to its official website, Solana can process 50k transactions per second. Solana utilizes a unique consensus mechanism called “Proof of History” (PoH), which easily handles increasing transaction loads without sacrificing performance.
Similar to Ethereum, Solana supports smart contracts, enabling developers to build decentralized applications (DApps) and deploy custom programmable logic on the blockchain. The Solana ecosystem has seen growth in various applications, including decentralized exchanges, stablecoins, NFT (non-fungible token) platforms, and more. Some popular projects on Solana include Serum (a decentralized exchange), Raydium (an automated market maker), and Mango Markets (a decentralized trading platform).
SOL is the native utility token of the Solana network, and it is used for staking, transaction fees, participating in governance decisions, and as an incentive for validators who maintain the network. Not long ago, SOL was trading above $140( March 2022), but since then, the price of Solana (SOL) has been decreasing.
The biggest selling pressure came after the FTX crypto giant went bankrupt, as Sam Bankman-Fried, the founder of FTX, was a huge investor and proponent of Solana. Because of this, the collapse of FTX had an even bigger influence on Solana than on some other cryptocurrencies.
Investors and traders remain cautious with the current SOL’s price at $20.30, reflecting a 2.8% decline over the last 24 hours and a 5.2% slump over the past seven days. However, the Solana ecosystem is experiencing a surge in the NFT space, offering a glimmer of positivity for the community.
Recent data shared by Step Data Insights reveals that Solana has emerged as a frontrunner in NFT sales volume over the last 24 hours. The positive data highlights a remarkable 20% surge in sales volume for Solana, outperforming major competitor Ethereum (ETH), which only managed a 3.4% increase during the same period.
Solana and Shopify announced integration
Another positive news is the recent integration between Solana and Shopify, which will enable millions of businesses and customers to use digital assets for their purchases. Shopify is one of the largest marketplaces in the world, and according to the news, Solana Pay, the payment protocol built on the Solana blockchain, is now plugged into e-commerce giant Shopify.
With the integration, users will be able to connect Solana-centric crypto wallets, like Phantom, and settle payments on-chain with merchants using USDC.
While USDC, one of the most popular dollar-linked stablecoins, is the first payment option to be enabled via the integration, other crypto assets will follow in the future, including the native currency of the Solana ecosystem SOL. Josh Fried, head of commerce business development at the Solana Foundation, told CoinDesk:
“When thinking about this integration, we chose a stablecoin because merchants and consumers “think in dollars. It creates a much simpler entry point when pricing is in a currency consumers and merchants naturally understand.”
Despite this positive news, investors should continue to take a defensive investment approach in the weeks ahead, especially because the cryptocurrency market remains extremely volatile, making it difficult to predict accurately what a coin’s price will be in a few hours and even harder to come up with a long-term target price.
There are also expectations of “some market turbulence” from looming recession concerns and macro uncertainty, while many analysts expect that the U.S. central bank could keep interest rates at restrictive levels for a longer period. The effect of the 2022 crypto price crash, U.S. inflation growth, and interest rate hikes haven’t diminished from the market yet.
Technical analysis for Solana (SOL)
Solana (SOL) has weakened from $25.39 to $19.29 since August 15, 2023, and the current price stands at $20.30. Solana (SOL) might have a hard time holding above the $20 level in the upcoming days, and a break below this level would indicate that SOL could probably test the price level at $18.
Important support & resistance levels for Solana (SOL)
On this chart (the period from April 2023), I marked important support and resistance levels that can help traders understand where the price could move. SOL remains under pressure, but if the price advances above resistance at $24, the next target could be $25 or resistance that stands at $26.
The current support level is $20, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $18. If the price drops below $18, which represents an important psychological support level, the next target could be located around $15 or even below.
What speaks for the rise in the Solana (SOL) price
The upside potential for Solana (SOL) probably remains limited for September 2023; still, if the price advances above the resistance that stands at $24, the next target could be resistance at $26. Traders should also consider that the price of Solana (SOL) is correlated with Bitcoin, and if the price of Bitcoin jumps again above $30000, we can see this cryptocurrency at a higher price level than the current price.
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. The last two weeks have been negative for SOL, and investors should continue to take a defensive investment approach as the macroeconomic landscape remains uncertain.
The current support level for SOL stands at $20, and if the price falls again below this level, it could reach $18 this time.
What do analysts and experts say?
The cryptocurrency market remains under pressure; Bitcoin’s price recently hit levels below $26,000, and according to analysts, SOL might have a hard time holding above the current price levels.
The fact that Sam Bankman-Fried, the founder of FTX, was a huge investor and proponent of Solana also continues to keep investors cautious even though the e-commerce giant Shopify and Solana announced integration this week.
Investors should continue to take a defensive investment approach in the weeks ahead, and market sentiment, regulatory developments, and macroeconomic trends will continue to have a major influence in determining the price of SOL.
There are expectations of “some market turbulence” from looming recession concerns, while many analysts expect that the U.S. central bank could keep interest rates at restrictive levels for a longer period, which is not good for risk-on assets such as cryptocurrencies.
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.