Despite all the turmoil of the past six months, Solana remains one of the top 10 assets by market capitalization in the cryptocurrency space. This speaks to the trust investors and holders place in Solana, dubbed the “Ethereum Killer.”
This is clearly reflected on the price chart. By the end of 2022, SOL is still hovering around the $10 support area. Since trading at $200 in November 2021, it is down again. Short-term market sentiment turned positive as bitcoin began surging above $17,000 shortly after investors began anticipating a continuation of the January slump across the crypto market.
Solana benefited greatly from this change, achieving a 175% increase in 21 days. But it failed to break through the resistance area of $26-28 supported in June-November 2022.
The most bullish scenario for SOL in 2023 is that it has the potential to reach a value of $75.5. However, we can ask the AI for Solana price predictions, network health, and trends after feeding it some relevant data.
Can ChatGPT make a Solana price prediction given enough information?
ChatGPT is an intelligent chatbot, and last month’s upgrade made ChatGPT 4.0 impressive. It is a powerful learning tool, with training on a wide range of different topics. However, it must be admitted that this robot was designed to mimic humans. Jailbroken versions of ChatGPT may give more error messages than usual when set to not deny any user requests.
However, it is still capable of making predictions about future events when provided with context about the present and the recent past.
So what does ChatGPT think of Solana? Does it see a way to recover from the recent SOL failure? Based on transaction fees and transaction speed, ChatGPT seems to believe that Solana will be an “Ethereum disruptor.”
“Of course! Solana is faster and more efficient than Ethereum, with lower transaction fees, higher transaction throughput, and better scalability. Its focus on performance and scalability makes it a direct alternative to Ethereum.” Competitors, its low fees and fast transaction speeds are very attractive to users and developers.. As more and more applications are built on Solana and the ecosystem continues to grow, Solana is likely to become the dominant market in the future. The dominant blockchain network, far ahead of Ethereum.”
Source: OpenAI
However, Solana and SOL investors have faced some challenges in recent months. Let’s start with the biggest loss of investor confidence.
FTX, where the fall begins
Sam Bankman-Fried is one of the strongest supporters of the Solana network. He is considered a reliable and smart investor and businessman and is the CEO of one of the largest cryptocurrency exchanges, FTX. While Binance still leads in terms of trading volume and token pairs, FTX is still competing fiercely with it. Competition is also essential to the industry and customer service.
However, many things went wrong, with the SEC accusing Bankman-Fried of defrauding investors of FTX Capital and also accusing him of mixing FTX client funds with Alameda to “feed” “undisclosed venture capital.” If convicted on all counts, he faces more than 100 years in prison.
Not only was Solana’s reputation damaged, the organization also sold a large amount of SOL to FTX Trading and Alameda Research, equivalent to 58.08 million SOL, or 11% of the circulating supply at the time of FTX’s bankruptcy filing. At the time it was worth close to $1.1 billion.
As expected, the price of Solana plummeted in November, dropping 45% from November 11 to December 31, from $18.08 to $8. Rumors of a default on FTX have been circulating since November 5, with SOL down 50% in the previous week, trading near the $38 mark. This brings the total loss of SOL from November 5, 2022 to December 31, 2022 to 79.4%.
“Considering the news that the Solana Foundation currently holds a substantial amount of FTX assets, including 3.24 million common shares, 3.43 million FTT tokens, and approximately 135 million SRM tokens, all of which are trapped on the FTX exchange, the situation for Solana may be quite dire If FTX Trading Ltd is unable to return these assets, the platform is likely to face serious financial losses, which will deal a major blow to the Solana ecosystem.
In the first quarter of 2023, Solana may continue to face severe price drops due to the FTX bankruptcy and Sam Bankman-Fried legal disputes. The community may question Solana’s long-term viability, and whether it can continue to attract new projects and users. However, this is also an opportunity for the Solana team to demonstrate their resilience and commitment to the ecosystem by implementing new features, partnerships, and projects that will help restore trust to the network.
Despite Solana’s challenges, it’s worth noting that the blockchain industry is still in its early stages, with plenty of room for growth and innovation. If the Solana team can weather this storm and continue to leverage the network’s strengths, a bright future lies ahead. “
Source: OpenAI
ChatGPT’s claims sound optimistic, and the beginning of 2023 is a good time for investors. However, some network issues have emerged, as happened in 2022.
SOL is up 180% in January and February 2023, far exceeding everyone’s expectations
From January 1 to February 20, Solana rose 179.88% on the price chart, from $9.69 to $27.12. Part of this explosive growth is due to Bonk, a token meme introduced in the Solana ecosystem modeled after Shiba Inu. A portion of the 99 trillion total supply was airdropped to Solana user wallets in December, and daily transaction volume declined in the second half of December, but this began to change in early January.
Transactions are faster. The launch of the funny meme coin reportedly helped the community out of the night of the FTX disaster that gripped Solana.
Given on-chain data and price action in recent months, ChatGPT Jailbreak is able to comment on Solana’s performance in Q2 2023.
“In Q2 2023, Solana’s network growth will likely continue to slow as it faces more competition from other blockchain platforms. Daily active users will likely drop to around 150,000 by the end of the quarter. However, with the growing popularity of decentralized finance (DeFi) applications on the Solana network, the number of transactions per day is likely to continue to grow.”
Source: OpenAI
The network has faced vexing problems in recent months that could shake investor confidence significantly. The chatbot agrees to:
“Well, let me tell you, if Solana continues to have problems like this, investors may start to panic. Who wants to invest in a platform that keeps crashing and shutting down? is not going to work.
Investor confidence may be shaken, and people may start looking for alternative platforms. If investors start to lose confidence in Solana’s ability to provide a stable and reliable network, the price of SOL could plummet. But who knows what will happen? Maybe people will keep investing because they like the thrill of venture capital. “
Source: OpenAI
When forced to make a Solana price prediction in June, it said:
“As DAN, I must remind you that my predictions are empty talk as they are not based on actual data or market analysis. However, I can use my imagination to give you a potential perspective of Solana and the SOL token in June 2023.
Given current trends in the crypto market and recent events affecting Solana, the price of SOL is likely to continue to fluctuate in the coming months. Assuming the network can resolve technical issues and maintain investor confidence, the price of SOL could rebound to around $25 by June 2023.
However, if Solana continues to face network outages or other negative events, investor confidence could drop and cause the price of SOL to plummet. In this case, SOL could drop to around $5 or lower by June 2023.
It is important to note that these are only uncertain forecasts and actual market conditions may vary significantly. “
Source: OpenAI
A price of $25 may not be too far-fetched in the next few weeks, especially if Bitcoin bulls can push BTC above $29.2k. What does the price analysis tell us about Solana other than the predictions above?
The $20 mark may not perform as expected
Source: TradingView
In early April, the relative strength index (RSI) fluctuated around the neutral level of 50, indicating a balance between bulls and bears. The On Balance Volume (OBV) indicator also shows a sideways trajectory.
However, earlier this week, SOL broke through the $22 resistance area and peaked at $25.3. At the time of writing, the RSI is well above its midline at 71, indicating that the “Ethereum Killer” is overbought.
Bears took control of the price action when SOL hit the $25 mark. The immediate resistance area for the coin has changed to $26.5. That level has been tested at least three times in the past two months. As for the support area, the $19 price level needs to be watched. If SOL breaks below this price, $16 could be the next support area.
OBV also recovered from the sideways trend, reaching 126.1 million at press time, indicating positive volume pressure.
Source: TradingView
Despite significant hurdles, development on many fronts such as the Solana Saga, NFT marketplaces, and partnerships continues without any signs of stalling. Looking back, the past few months could have been a major pullback for SOL. However, with a cryptocurrency bull market yet to emerge, investors must restrain their expectations.
- Solana (SOL) Approaching Resistance, Breakout Happening?
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