Solana Price Prediction as SOL Drops 5.5% – Time to Buy the Dip?
SOL, the cryptocurrency that powers Solana’s higher performance smart-contract enabled blockchain, has stabilized in the $13.50 area on Thursday after falling back from the mid-$14.00s on Wednesday. Versus its earlier weekly highs in the $14.40 area, SOL is currently down about 5.5% and some traders are asking whether it is time to buy the dip once again.
Price Prediction – Where Next For SOL?
While SOL is for now finding support at its 21-Day Moving Average, which currently resides close to $13.50, betting in favor of the cryptocurrency in the context of the current markets remains risky. SOL still trades about 65% lower versus its pre-FTX/Alameda collapse highs in the $38 area, with traders concerned about the future of the blockchain project owing to its close ties to the now-defunct cryptocurrency exchange and its sister hedge fund.
Until uncertainty about the Solana Foundation’s future (i.e. funding) becomes clearer, SOL sentiment may struggle to see a lasting lift. A break back below the 21DMA could herald a move back lower toward the November lows under $11.
But if risk appetite returns to cryptocurrency markets in the coming weeks, perhaps triggered by further downside US inflation surprises, or perhaps a not-as-hawkish-as-feared December Fed meeting, or by a “Santa rally”, and SOL can muster a sustained push above its 21DMA, it will face tough resistance in the $19 area. This is a key long-term resistance-turned-support area dating back to the first half of 2021. The next key area of resistance would then be the pre-FTX collapse 2022 lows in the $26.50 area.
Solana DeFi Rebuilding Following Collapse of FTX’s Serum DEX
Prior to FTX’s untimely demise in early November, Serum, a DEX created back in 2020 by a consortium including FTX and Alameda, had functioned as a central source of liquidity for the Solana Decentralized Finance (DeFi) ecosystem. Serum’s private keys were housed in FTX. After FTX suffered its post-implosion hack (from which it lost $100s of millions), Solana’s DeFi ecosystem rushed to cut ties with Serum, and Solana’s DeFi total value locked (TVL) experienced a huge capital flight.
But developers are rebuilding. Ecosystem stakeholders have pushed ahead with a fork of Serum free from FTX or Sam Bankman-Fried ties called OpenBook. “The community’s evolution of Serum to OpenBook has been great to watch,” Solana co-founder Anatoly Yakovenko told the crypto press recently. “The community mobilized quickly and in the open to redeploy Serum so it continues on a new, secure path, with decisions made by and for the community members,” he stated, adding that “OpenBook is a great demonstration of decentralization in action.”
According to DeFi Llama, OpenBook has already accumulated some $2.7 million in TVL. That’s a far cry from Serum’s pre-FTX collapse TVL of above 100 million, but is a solid start.
Solana Was Outperforming Ethereum On Some Metrics Prior to FTX Collapse
According to data compiled by crypto analytics firm Nansen, Solana was performing well in Q3 2022, despite the crypto bear market. “Overall daily transactions on Solana had stayed above 200m transactions throughout Q3 2022,” the company proclaimed in a tweet.
◎@solana hosts one of the most diverse ecosystems of dApps despite being a non-EVM blockchain, thanks to its fast finality and low fees.— Nansen 🧭 (@nansen_ai) December 8, 2022
Overall daily transactions on Solana had stayed above 200m transactions throughout Q3 2022. pic.twitter.com/ssthNlXRc1
Solana “hosts one of the most diverse ecosystems of dApps despite being a non-EVM blockchain, thanks to its fast finality and low fees”, Nansen stated. If the Solana ecosystem can soldier on and keep building despite the current tough market conditions, and thus maintain its status as one of the strongest blockchains in the space, SOL has every chance of making a serious comeback sometime in the coming years.
Altcoins Offering Quicker Returns
Cryptocurrencies have been trading sideways for a few weeks now, leading some traders to start looking at alternatives with more potential in the short term. Listed below are some of the leading presales in the market, allowing investors to get in on the ground floor.
Dash 2 Trade (D2T)
Those interested in investing in a promising crypto trading platform start-up should look no further than Dash 2 Trade. The up-and-coming analytics and social trading platform hopes to take the crypto trading space by storm with its host of unique features.
These include trading signals, social sentiment and on-chain indicators, a pre-sale token scoring system, a token listing alert system and a strategy back-testing tool. Dash 2 Trade’s ecosystem will be powered by the D2T token, which users will need to buy and hold in order to access the platform’s features.
Dash 2 Trade is currently conducting a token pre-sale at highly discounted rates. D2T token sales recently surpassed $9.055 million. The sale has now entered its fourth and final phase and sales are still going strong, with $400K coming in in the last 24 hours. The pre-sale dashboard is going to be released soon, with the development team currently running ahead of schedule. Token are currently selling for $0.0533 each, which observers are calling highly discounted.
Dash 2 Trade was recently listed as the third-best presale token of 2022 by CoinCodex.
Amid the growth in popularity in recent years of environmentally and socially friendly investments, investors looking for a green cryptocurrency should consider the IMPT token. IMPT.io has partnered with thousands of the world’s largest retailers to help offset their carbon footprints and allows users to trade carbon credits on the blockchain.
IMPT tokens are currently in their second stage of the presale with IMPT having raised over $15.6 million. That amounts to $1 million in token sales in just the last 24 hours. Investors only have another three days to purchase tokens at the current discounted price of $0.023. IMPT token exchange listings begin in a few days.
IMPT was recently listed as the best presale token of 2022 by CoinCodex.
Major blockchain-based games like Axie Infinity lost significant traction in 2022. As a result, many investors interested in the crypto gaming space are looking for alternative avenues. Calvaria, an up-and-coming play-to-earn battle card crypto game, could be a good alternative. Calvaria seeks to boost crypto adoption by creating a bridge between the real world and crypto, a fun and accessible crypto game.
Investors should consider Calvaria’s RIA token pre-sale. Calvaria has now raised $2.36 million, with a crypto whale scooping up $97.5K in one purchase on Thursday. The presale is in the final stage, with only 24% of tokens left.