Solana (SOL), the cryptocurrency as soon as supported by Sam Bankman-Fried, pared some losses on Dec. 30, a day after falling to its lowest degree since February 2021.
Solana worth down 97% from November 2021 peak
On the each day chart, SOL’s worth rebounded to round $10.25, up over 20% from its earlier day’s low of roughly $8.
However, the intraday restoration did little to offset the general bear development — down 97% from its document peak of $267.50 in November 2021, and down over 20% up to now week.
However whereas the yr has been brutal for markets, Solana now joins the ranks of the worst-performing tokens of 2022, particularly FTX Token and LUNA, that are down round 98%.
SOL worth may recuperate 50%
Nonetheless, the most recent Solana worth rebound hints at the potential for extra upside heading into 2023.
That’s primarily attributable to Doji — a candlestick sample that kinds when the asset opens and closes close to or on the identical degree in a particular timeframe. SOL fashioned what seemed to be a “customary Doji” on its each day chart on Dec. 29.
Conventional analysts contemplate a Doji as a possible reversal candlestick sample, given it reveals that bears and bulls are at a a stalemate. Due to this fact, from a technical perspective, a Doji formation throughout an extended uptrend interval may recommend a bearish reversal within the making, and vice versa.
SOL’s Doji has appeared after an extended downtrend interval, as proven within the each day chart under. That, coupled with the token’s oversold (<30) relative energy index studying, means that an prolonged bullish reversal might occur in 2023.
SOL’s main upside goal seems to be to be round $15, up over 50% from present worth ranges. The $15 degree has served as resistance since Nov. 13, 2022.
Battling unfavorable fundamentals
Solana has emerged as certainly one of 2022’s worst-performing cryptocurrencies, with its year-to-date losses close to 97%. As compared, the whole cryptocurrency market cap has dropped onl 65% in the identical interval.
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A number of causes may clarify SOL’s underperformance in 2022 resembling a hawkish Fed, Solana’s recurrent downtimes, a $200 million hack on certainly one of its related wallets, and possible FTX publicity.
Earlier in December, Anatoly Yakovenko, the co-founder of Solana Labs Inc., clarified that almost 80% of tasks on Solana’s blockchain had no publicity in any respect to FTX, stating that there is extra to their platform than the defunct crypto trade.
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a call.
