Solana has been surging lately after Sam Bankman-Fried’s FTX case restores new hope to SOL investors. Additionally, the ongoing altcoin rally contributed to SOL tripling in price over the past month.
Solana’s all-time high price was $259.96 in November 2021, but can this altcoin push past its old ATH and hit $1000? Stick around to find out.
🌐 What is Solana (SOL)
Solana is a layer 1 blockchain prides itself on being highly scalable and built for mass adoption. The network was created by Anatoly Akavenko and was named after Solana Beach. The blockchain initially hit the crypto space with the promise of being the Ethereum killer but hasn’t yet lived up to that.
Solana has a block time of 0.4s and allegedly handles 710,000 transactions per second. The network combines Proof of History and Proof of Stake for security and validation. The Proof of History consensus mechanism removes the need for constant time agreement between validators, which results in a faster network.
The Solana blockchain uses Rust programming language to create smart contracts and is secured by SOL, the native utility coin of the network.
SOL is used as the official gas fee token for the network’s transactions, and these fees are burned, making SOL a deflationary coin.
While Solana has barely met its initial promises, it is still far better than most blockchains. According to Solana Explorer, the network’s current TPS stands at 4,442 and slot time averaging 430 milliseconds.
🪙 Solana (SOL) Tokenomics and Statistics
SOL has had an eventful ride since it began being traded. The SOL price is $65.69 (as of November 16, 2023, 10:26 A.M UTC). This signifies a 10.11% increase over the past 24 hours and a 40.07% increase in the last 7 days.
SOL circulating supply stands at 422,640,419 and has a market cap of $27.776 billion. Recently, SOL has been ripping through the charts as investors regain their lost trust in this asset.
Furthermore, Solana’s rise from the ashes indicates the market may be recovering from the long crypto winter that has lasted 2 years.
💱 SOL’s Historical Price Performance
Since early September 2023, SOL has swelled over 3.73 times from 17.60 to $65.69, leading the crypto industry into what many now call a mini bull run.
Solana also faced difficulties after the fall of the Sam Bankman-Fried FTX empire. FTX was a key investor in Solana since its inception, and Sam had invested significant money in the project.
Fearing that the FTX bug would jump onto Solana, investors fled the project, and the SOL price plummeted.
Despite how things played out, Solana continued with developments, improving their TPS, uptime, and decentralization, which is excellent for DApps and blockchain gaming.
📰 Expert Opinions and Predictions
While it’s good to do a personal analysis, finding out what other market analysts have forecasted can be helpful.
Expert analysts at Investing.com think the SOL price has a good chance of rising to $88.51 and $129.60 if the price trend continues.
However, if the trend reverses, the cryptocurrency could fall to $32.54, $17.47 and $12.77 support levels.
Experts at Changelly think SOL will hit a high of $71.52 by Christmas 2023 before entering a reversal. They think Solana has hit a range of resistance and will consolidate at this price for next 3 – 4 weeks before coming down from here.
📈 Solana (SOL) Technical Price Analysis
Solana, the 6th largest cryptocurrency by market cap, broke out of its ascending channel to post new highs. Consequently, SOL skyrocketed above the previous daily high at $38, breaking the market structure of lower lows and lower highs.
At the time of the analysis, the price of SOL is $65.69, and if the trend continues, SOL may reach the $74 and $85 levels.
SOL has established a local support level at $50 and $60 on the lower side. However, if the selling pressure is too much, SOL may fall to $38, where a relatively stronger resistance-turned-support has formed.
The 50-day moving average supports a bullish narrative, while the RSI, which shows the magnitude of price change, is overbought.
The relative SOL trading volume is below the cutoff line, showing a weak volume. Increasing price with weak volume indicates that a correction is due for the asset.
SOL price can hit $1000, but not in 2023. The asset has a circulating supply of 462M tokens, which would put it at a market cap of $462 billion. This is impossible in 2023, but may be possible in the future when more of traditional finance is onboarded to the crypto space.