As a result of the carnage in the cryptocurrency market brought on by the liquidity crisis at FTX, the price of Solana (SOL) has taken a significant hit, with the asset closely tied to the crypto exchange. Now that the atmosphere in the market has begun to calm in the aftermath of the crash, traders and investors are seeking to forecast SOL’s future price.
Taking into account the community votes cast through the Price Estimate tool at CoinMarketCap, the collective estimate sets the price of Solana at an average of $28.35 by December 31, 2022, according to the data retrieved by Finbold on November 21.
If the community’s predictions, which result from 1,118 votes cast by press time, come true, they would represent an increase of $16.35 or +137.39% to the current price of $11.93.
Notably, in their end-of-October price prediction, the community had an accuracy rating of 87.10%, estimating $36.82, while Solana closed at $32.61.
Solana technical analysis
Technical analysis (TA) indicators for Solana are mixed on the weekly gauges. The summary gauge points to a ‘sell’ sentiment at 10, similar to the moving averages (MA), which suggest a ‘strong sell’ at 9.
However, the oscillators indicate a ‘buy’ sentiment at 4 for Solana, while the majority (6) occupy the ‘neutral’ zone, according to the data obtained from the market analytics platform TradingView on November 21.
Currently, Solana is trading at $11.94, down 8.52% in the last 24 hours and a further 13% across the previous week, with a total market worth of $4.3 billion.
Pseudonymous crypto trading expert, Altcoin Sherpa, observed that Solana’s chart patterns deduced that the decentralized finance (DeFi) asset suggested it could fall as low as $3 if the level around $11.80 does not hold.
“If these current areas fall, $3 is the next significant area up IMO. Long term I think that FTX/SBF getting destroyed is probably a net good for the ecosystem but short term wise, this is still pretty disastrous.”
Elsewhere, ZeroHedge noted:
“[SOL is] Currently going through a squeeze breakout to the downside Once Red Dots start below the Track line you don’t even think about touching it before it goes above Track line.”
Since the year’s turn, the price of Solana has declined from $170, as it followed the prevailing bearish sentiment on the crypto market. If the current pattern is anything to go by, it may fall further before the end of the year.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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