Solana Price Prediction as SOL Becomes 10th Most Traded Coin on the Market – Can SOL Reach $100 This Year?
SOL, the cryptocurrency that powers the high-performance smart-contract-enabled Solana blockchain, has been edging lower in tandem with the broader cryptocurrency market on Monday and price predictions are becoming more pessimistic. Despite the uninspired price action, a lot of trading is taking place under the hood. According to CoinMarketCap, Solana saw more than $600 million in trade volumes over the past 24 hours, the tenth most of any cryptocurrency.
SOL/USD was last trading just to the south of its 21-Day Moving Average (DMA) in the $23s per token, now down more than 13% versus its late-January highs in the $27 area as traders asses mixed signals coming from the US economy in the form of recent strong US jobs and ISM Services PMI data versus an underwhelming corporate earnings season thus far.
These mixed signals have added to confusion regarding how much further tightening to expect from the Fed in the quarters ahead. Solana traders will thus need to keep an eye on remarks from Fed chairman Jerome Powell who is speaking on Tuesday – at last week’s Fed meeting, he came across as less hawkish than many had been expecting, boosting crypto prices at the time.
Price Prediction – Where Next For SOL?
Risks seem to be rising that the Fed might not be quite as dovish as everyone was hoping as recently as one week ago. That raises the risks of a short-term pullback in cryptocurrency markets. Solana’s short-term technical picture has also darkened a tad in light of the cryptocurrency’s recent failure to muster a sustained break above the $25-27 resistance area and the 200DMA at $26.30.
With the cryptocurrency now under its 21DMA and eyeing a test of near-term support in the $22 area, some technicians are expecting a pullback toward support in the $20 area. Meanwhile, other technicians are warning about the possibility of a near-term drop all the way back support in the $18 area, where the 50 and 100DMAs reside, as well as the 23.6% Fibonacci retracement back from the late-December 2022 lows around $8.0 to the summer 2022 highs in the $48 area.
Another technical sign for the Solana bulls to worry about is the fact that the cryptocurrency continues to respect a long-term downtrend that has been in play going all the way back to early 2022. Even if SOL/USD was able to break above its 200DMA and push to new highs, it would hit significant resistance around $30. If Solana cannot break above this downtrend in the weeks ahead, holding above $20 will become increasingly difficult.
Can SOL Hit $100 in 2023?
Signs have been growing that the 2022 bear market in crypto markets might now be over – on-chain Bitcoin analysis shows various indicators flashing a long-term buy signal, while the macroeconomic backdrop in 2023 seems likely to be more favorable, with the Fed only expected to do limited further tightening.
Bulls continue to wonder whether Solana can recover back to its early 2022 levels to the north of $100. If the economic data does facilitate a less aggressive approach from the Fed this year, then there is no reason why not. In the space of just three months from July 2021 to September 2021, Solana’s price did a more than 9x from close to current levels to the low $200s per token, showing that such moves are certainly within the realm of possibility.
If you’re looking for other high-potential crypto projects alongside SOL, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
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