Solana, once branded as the “Ethereum Killer”, has had a tumultuous past few months. With a funded venture from Binance CEO Sam Bankman-Fried, investors had high expectations for the project. However, the SEC charged Bankman-Fried with defrauding equity investors of FTX and the foundation was forced to sell 58.08 million SOL worth $1.1 billion in December. This caused investors to panic, and the price of Solana nosedived in November and by December had dropped by 79.4%.
Despite the losses, Solana was able to rebound well in January as Bitcoin’s sharp rally shifted the sentiment to bullish. With gains of 175% in 21 days, the bulls were not able to keep up the pressure and Solana failed to breach the resistance zone. ChatGPT 4.0, a powerful chatbot trained on a variety of topics, believes that Solana will stay true to its Ethereum killer moniker and according to AMBCrypto’s prediction bot the most bullish scenario could see SOL valued at $75.5 in 2023.
However, further network outages could spook investors. In April, the Relative Strength Index (RSI) showed almost no pressure from the bulls or the bears and the On Balance Volume (OBV) displayed a flat trajectory. However, with the recent push past the $22 resistance level and RSI showing signs of overbought, the bears are now in control.
The network outages have been troublesome, but development on multiple fronts such as Solana Saga, the NFT market, and partnerships have continued. Investors are hoping that this could potentially be an enormous New Year’s sale on SOL, as speculation grows that a crypto bull market may soon be in sight.
Solana is a blockchain technology project and protocol that is focused on providing a high-performance blockchain platform for developers. Solana’s protocol is designed to allow over 50,000 transactions per second to be processed and settled instantly. Breadth, FinLabs, and Chainlink are some of the key partners of Solana.
Sam Bankman-Fried is an entrepreneur and investor, who is known for founding Alameda Research, the firm behind FTX, now one of the largest cryptocurrency exchanges in the world. He is also the CEO of Alameda and FTX, as well as co-founder of Serenity Financial, a derivative exchange. However, the SEC has charged him with defrauding the equity investors of FTX and he faces more than 100 years in jail if convicted on all counts.
