Solana Price flashes Hopes for Revival of the Bullish Trend as Ethereum’s Co-Founder Vitalik Buterin Jumps in Support

Key Takeaways

• Solana’s price displayed a strong rebound in the past few hours and surged by nearly 50% after marking the 2022 lows at $8. 
• SOL price rally regain bullish momentum as soon as Vitalik Buterin stands in support of the blockchain. 
• Despite the current bearish pressure and the FUD circulated around the chain, Buterin believes the network still has a bright future

Solana’s price was badly impacted by the FTX debacle and witnessed a steep fall after the exchange collapsed. The altcoin dropped more than 40% since then, bringing an overall loss of more than 94% from the 2022 highs and nearly 97% down from its ATH. While the future of the token was speculated to be under dark-misty clouds, Ethereum Co-founder Vitalik Buterin’s mentions invited some hopes for the platform.

Read more: Solana Price Prediction

The SOL price marked its bottoms at $8, just before the end of 2022 trade and while it was assumed that the token may mark bottoms below $5, it underwent a decent rebound. The flip initiated revoked the bearish trend for a while, offering a decent push towards the north. It collided with the time when Buterin tweeted in support of the chain and believes it still has a bright future. 

Some smart people tell me there is an earnest smart developer community in Solana, and now that the awful opportunistic money people have been washed out, the chain has a bright future.

Hard for me to tell from outside, but I hope the community gets its fair chance to thrive🦾🦾

— vitalik.eth (@VitalikButerin) December 29, 2022

Solana’s price had lost more than 40% during the second half of December 2022 and traded in the single digit for the first time since February 2021. The collapse of FTX impacted the SOL price as Sam Bankman-Fried had invested heavily in the token and also supported the Solana projects with FTX deals. 

Solana Technical Overview

Source: Tradingview

• The price faced rejection in an attempt to rebound following a correction after a steep downfall fueled by the FTX collapse
• Since then the trade setup remained bearish within a descending triangle, aiming to drop heavily below the pivotal support zones.
• The price did break below the support zone and after hitting the last point of defense, initiated a recovery phase that raised the price within the triangle.
• After a brief retest, the possibilities of a steep upswing widen but the bearish influence may prevail until the price hovers within the bearish pattern.
• Additionally, the price is approaching the pinnacle of the consolidation and as the breakdown has been accomplished the price may now fly high, breaking above the resistance of the triangle.
• With a breakout, the price may secure the levels above the pivotal resistance at the 50-day MA at $12.78 which may ignite a significant recovery. On the contrary, if it fails to do so, the price may drop hard to the predicted support below $5.

Additional Read: Solana Technical Analysis

Solana On-Chain Analysis

Solana Development Activity

Source: Santiment

The development activity signifies the platform working on network upgrades, intending to bring up new features. A rise in the activity indicates the development team is extremely active and working to build a strengthened platform. This induces significant trust among the market participants that could be pretty bullish for the token in the long term. 

The development activity of Solana has been fluctuating very heavily in the past 6 months which denotes the network upgradation could not be the nucleus at the moment. Presently, the levels have dropped back to the bottoms they visited during the FTX collapse. Hence denoting a drop in development activity. 

All about the FTX Collapse Explained

Solana Social Volume

Source: Santiment

The social dominance of tokens compares the social volume of the token with the volume of the top 100 tokens as per the market capitalization. If the volume drops by 50% it means that the number of messages or posts of the token is half of the messages or posts that discuss the top 100 tokens. A rise in dominance denotes the token being increasing its dominance within the top 100 tokens. 

The social dominance of Solana price has been pretty low for more than a month now and is unable to rise beyond 2.5%. The dominance rose beyond 5% during the FTX collapse which appears to have settled below 2% in recent times. A drop denotes the dominance of the token has dropped compared to the top 100 tokens within the market. 

Wrapping-it Up

Solana’s price has been under distress for quite a long time now. Although Ethereum co-founder Vitalik Buterin believes the platform to be having a bright future, the fact remains the same: the token has plunged more than 98% since its highs. While, the development activity and the social dominance, both have dropped hard, the price rebound appears to be short-lived. Hence the price reaching the last point of defense below $5 could be imminent if the price faces rejection and drops back marking a single-digit figure.