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Solana Price Prediction as SOL is Deemed a Security by the SEC – Will the Charges Send SOL Lower?

Joel Frank
Last updated: | 4 min read
SOL/USD Chart / Source: TradingView

SOL, the cryptocurrency that powers the smart-contract-enabled, high-performance Solana layer-1 blockchain protocol, has just been deemed as a security by the US Securities and Exchange Commission (SEC).

In the past two days, the SEC has sued both Binance and Coinbase, two of the world’s largest cryptocurrency exchanges in terms of trading volumes, for operating as unlicensed securities exchanges within the US.

Part of the justification for that accusation resides in the fact that both firms have been allowing the US general public to invest in cryptocurrencies like Solana, which the two lawsuits allege are actually securities.

Other major blue-chip tokens like Cardano (ADA), Polygon (MATIC), BNB, BUSD and Cosmos (ATOM) were all also labeled as securities by the US regulatory agency.

The lawsuits have sent SOL’s price tumbling, with SOL/USD last changing hands near $20, down over 10% from weekend highs above $22.

For now, SOL is holding to the north of its 200-Day Moving Average at $19.43, which has offered strong support in the past two days.

But in wake of SEC action, price predictions have become more pessimistic.

Price Prediction – Where Next for Solana (SOL)?

The SEC’s assertion that Solana (SOL) is a security could have major ramifications for the cryptocurrency.

If the SEC wins it lawsuits against Binance and Coinbase (either in court or via a favorable settlement), then US crypto exchanges may be forced to delist SOL on their platforms.

If they wanted to keep offering trade in cryptocurrencies the SEC deems as securities, then they would need to register as securities exchanges, which many may not want to do.

While a conclusion to the just announced lawsuits against Coinbase and Binance may be some way off, exchanges may want to pre-emptively remove tokens like Solana (SOL) amid uncertainty regarding its future classification.

That could make it much more difficult for one of the world’s most important buyer bases to invest in the cryptocurrency, dampening its longer-term price outlook.

And SOL’s technicals are also concerning.

The recent reversal lower means Solana has failed to break to the north of a downtrend from its November 2021 record highs, meaning the bear market could remain in play.

A dip under the 200DMA could open the door to a retest of March lows in the $16 area.

SOL/USD Chart / Source: TradingView

Solana (SOL) Alternative to Consider – yPredict

With Solana’s outlook dampened by the SEC’s barrage of new lawsuits, investors might want to consider diversifying their crypto portfolio into project’s with a better chance of delivering near-term gains.

One high-risk-high-reward investment strategy that some investors might want to consider is getting involved in crypto presales.

This is where investors buy the tokens of up-start crypto projects to help fund their development.

These tokens are nearly always sold very cheap and there is a long history of presales delivering huge exponential gains to early investors.

Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.

If an investor can identify such projects, the risk/reward of their presale investment is very good.

The team at Cryptonews spends a lot of time combing through presale projects to help investors out.

One such project that the team has identified as having a very strong potential is yPredict.

What is yPredict?

A ground-breaking new AI-powered crypto trading and market intelligence platform called yPredict is building a first-of-its-kind, institutional-grade crypto price prediction system.

According to observers, the tool, which is powered by yPredict’s in-house deep data analysis, will help crypto investors discover the next explosive crypto with ease.

The best part, yPredict’s crypto price prediction system will remain free and open for all users to access – the price predictions will be made publicly available and require no login to see, the project’s Whitepaper explains.

But yPredict offers investors much more than just crypto price predictions.

The project is “building a cutting-edge crypto research and trading platform that provides traders and investors access to dozens of AI-powered signals, breakouts, pattern recognition, and social/news sentiment features”, the start-up says in its Lite paper.

The platform’s technology was designed using state-of-art predictive models and data insights built by top 1% AI developers and quants.

Meanwhile, “the marketplace will enable experts to earn recurring revenue by offering their model predictions or data research as trading signals, which traders and investors can subscribe to”.

To fund the development of its revolutionary AI-powered crypto trading and market intelligence platform, yPredict is running a presale of the native $YPRED token that will powers its platform.

The presale is absolutely flying and just hit the massive $2 million milestone.

The project’s presale is in its sixth stage, with $YPRED tokens selling for $0.09.

However, there’s still plenty of upside for new investors, as the token will list across major exchanges for $0.12 later this year, for paper gains of 33%.

But the pace at which yPredict’s $YPRED token continues to fly off the shelves means that investors need to be careful not to miss out before the presale sells out.

yPredict has a presale hard cap of $6.5 million, which could be hit in a couple of weeks if the presale continues to gain pace like it has in recent days.

The 33% gains that investors who get in now can secure could pale in comparison with the upside $YPRED could enjoy in the long run.

Visit yPredict Here