Key Takeaways:
- The Solana price closed the previous day’s trade at $14.03 with a market capitalization of $116.37 million and a circulating supply of 362.9 million SOL
- SOL price has been severely impacted by the recent fall-out led by the collapse of the popular crypto exchange FTX.
- The probability of a significant rebound is extremely low as social dominance has dropped heavily along with decreased activity.
Solana Price Analysis
- Solana price has been trading within a bearish, descending pennant ever since the market crashed due to the collapse of the Terra ecosystem in May 2022
- However, the recent fallout of FTX compelled the price to slice through the lower support much before reaching the pinnacle of consolidation
- Presently, the price is consolidating within a channel after plunging heavily, forming a bearish flag.
- The SOL price is trying hard to break the upper band of the channel, but a rejection from here may drag the price below $5.
Additional Read: Solana Price Prediction
Solana (SOL) On-Chain Analysis
- The social dominance of the token has dropped significantly in recent times. Moreover, the FTX collapse has also negatively impacted the dominance which is swinging within a descending trend.
Source: Santiment
- The development activity which plunged hard since the beginning of the month, bounced back to rise significantly high. Meanwhile, the activity has dropped since this week, but the recent market crash drove the activity down. However, a slight increase in activity is witnessed of-let.
Source: Sentiment
- The total weighted sentiments are calculated by combining the positive and negative sentiments and multiplying them with the trading volume. The sentiments are currently within the negative regions which describes the bearish mood of the investors and their probable price prediction continues to remain bearish.
Source: Sentiment
- Meanwhile, the market cap dominance has drooped heavily since the beginning of the month that slashed from 1.2% to as low as 0.621% at the moment.
Source: Messari.io
Solana Price Prediction
Solana’s price led a massive bull rally in 2021 that surged by more than 1000% to reach highs above $250 from lows around $20. However, the token regain a significant bullish momentum as it reclaimed the levels above $100 after a brief correction in Q1 2022. Meanwhile, a couple of massive market crashes after May 2022 led the price to crash heavily by nearly 95% at the moment.
The trade is approaching the end of 2022 trade, the volatility is expected to rise a little, while the direction of the price currently remains uncertain. Considering the above price variations and the observations, the resurgence of bears appears to be likely and hence the prices could be driven lower in the coming days. If the SOL price closes the 2022 year with a single-digit value, then the recovery may not knock in any time shortly.
The SOL price may gain some momentum in 2023 but may certainly not regain a firm bull run in the coming years. Until the bulls, who have either exited the platform or continue to remain calm, the Solana price is expected to consolidate within the same narrow ranges.
Conclusion
The Solana price may not gather wider attention and adoption as numerous negative rounds revolve around the token. If the SOL price shares the same fate as LUNA or LUNC or FTT, recovery may be prolonged for years. Besides, a bullish bounce may invalidate the bearish thesis, but it appears unlikely shortly.
Hence, the SOL price continues to remain within deep waters regardless of the market trend in the coming days. As the platform is speculated to remain uncertain for a long, the market participants and the whales could remain aloof until the token displays some strength. Therefore, the Solana price prediction continues to remain bearish for a long.
Read more: FTX Price Prediction