As Sam Bankman-Fried’s FTX empire comes crumbling down, Solana faces immense public scrutiny and pressure

Analysis Markets

In Brief

Technicals suggest the long-term trend for SOL is bearish.

Solana price drops to $8.80.


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The Solana network has been an important area of focus for the crypto community. With its innovative consensus mechanism, transaction speed, and scalability, it came on the scene as a potential game-changer for blockchain projects. However, since the collapse of FTX in 2022, some have suggested that SOL price appreciation was more driven by Bankman-Fried’s marketing efforts than by any real value offered by the platform.

SOL price is down 94.8% over the past year, and the altcoin is struggling to recover from the bloodbath. With competition increasing in the crypto space, it remains to be seen whether Solana will be able to stand out in 2023. Its ability to demonstrate real-world value with its technology, as well as effective marketing going forward, could determine its success.

The Solana network is evolving quickly, and with its strong team of developers, advisors, and supporters, it has the potential to create a lasting impact in the blockchain space. As investors consider their options in this ever-changing landscape, they should pay close attention to any new developments that could shape their future.

Only time will tell if Solana can turn the tide and become a viable option for investors in the future. With its cutting-edge technology and promising potential, it’s one to watch in the coming years. In the meantime, investors should remain vigilant as they make their decisions, as the crypto markets can be unpredictable and volatile. As always, it is important to do your research before investing in any asset.

What do technicals suggest about SOL?

Technical analysis suggests that Solana is currently in a long-term bear market, with its price dropping significantly over the past year. However, it appears to be forming an uptrend and may have found support near the $5.00 level. If this trend continues, SOL could see some positive gains soon.

Source: Tradingview

The SMA200 and SMA50 indicate that the long-term trend for SOL is bearish, but there appears to be some short-term hope. The MACD also suggests an uptrend in the making, though it remains to be seen whether or not this will hold up in the long run.

The Ichimoku Cloud also suggests SOL is in a bearish long-term trend, but it is gaining some momentum on the daily chart. If this trend continues, Solana could see some positive gains soon.

At the time of writing, SOL is currently trading at $8.8, down by 9% from the previous day. Although it is in a bearish trend, there may be some potential for bullish momentum to emerge if the trends on the daily and weekly charts hold up. Investors should monitor these trends closely as they make their decisions.

Overall, Solana could have a bright future, but caution should be exercised when investing in crypto assets. Watching for new economic and network developments will be key to determining its success in the coming years.

Conclusion

In summary, Solana is a promising blockchain project with innovative technology that has gained much attention over the past year due to its involvement with FTX. Whether or not it will be able to stand out in the increasingly competitive crypto space remains to be seen. Technical analysis suggests that SOL may have found a bottom and could soon show signs of recovery, but investors should remain vigilant as the market can be unpredictable. Doing your research before investing is key for anyone looking to add this asset to their portfolio.

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Disclaimer

Any data, text, or other content on this page is provided as general market information and not as investment advice. Past performance is not necessarily an indicator of future results.

Moses Kimathi

Moses is an experienced freelance writer and analyst with a keen interest in how technology is disrupting the financial sector. He has written extensively on the subject of cryptocurrencies from an investment perspective, as well as from a technical standpoint. He has also been involved in trading cryptocurrencies for over two years.

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