Is the Solana bull market coming to an end?

Solana is a popular cryptocurrency that is currently trading at $54.56 with a trading volume of $2,527,267,755. The cryptocurrency is down by almost 2.3% in the last 24 hours and ranks #7 with a market capitalization of $23,053,287,862. It has an infinite maximum supply and a circulating supply of 422,298,234 SOL.

The price decline of Solana is because of the SEC’s latest lawsuit in the US against a popular crypto exchange, Kraken. The SEC filed a lawsuit on November 20, accusing Kraken of violating security laws. 

During this filing, the SEC also labeled a few cryptocurrencies, including Solana, as securities, resulting in a declining SOL price of almost 10.25%. The potential designation by the SEC of SOL as a security has affected the availability of the token on several crypto exchanges in the United States.

Technical price charts suggest the price correction of the SOL cryptocurrency has started near the main Fibonacci Retracement Level, limiting its upside biases. The Fibonacci line of 0.236 is almost near $67.4, acting as resistance ever since 2022. 

These are bearish factors that have raised the potential for Solana to extend its correction. It begins with the falling SOL price to $47.50 with the flipped support level and an extended $30 sell-off in case the previous level breaks. 

Almost down by 50% from the existing prices, the $30 level coincided with Solana’s 50-week EMA, while an uptrend line has ascended in a channel pattern. 

According to our Solana predictions, the SOL token price is expected to be around $49.88 on average in 2024, with a minimum and maximum price estimated to be $40.90 and $58.87, respectively. Experts predict that SOL tokens will experience a growth of over 50% in 2024.

Several cryptocurrencies, including Solana, experienced a significant decline in value from their all-time high of over $250 in 2021 to below $10 by the end of 2022 due to their association with the founder of the renowned cryptocurrency exchange FTX, Sam Bankman-Fried, which ceased operations in 2022. 

Solana, nevertheless, has benefited substantially from the crypto market’s reversal in 2023. Investors primarily purchase SOL tokens through well-known cryptocurrency exchanges, including Coinbase, where the coin is currently valued at approximately $60. There are a limited number of investors who are prepared to purchase the token via traditional channels.

One reliable option is the GSOL (Grayscale Solana Trust), which is available for trading on OTC. Similar to Grayscale Bitcoin Trust, which has assets worth $23 billion under management, Grayscale Solana Trust can also be purchased and sold in conventional brokerage accounts. 

As it is not an ETF, investors cannot arbitrage away the price differentials between the real-time SOL market price and the trust’s net asset value. In contrast to GBTC, which has been substantially discounted, which has diminished expectations that the trust will shortly transition into ETFs, GSOL has experienced the exact opposite. A substantial premium peaked at 869% last week. GSOL investors are essentially paying nearly ten times the market pricing for SOL tokens.

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In conclusion, increased adoption and usage, the rising prevalence of DeFi and NFTs, and technological advancements on the Solana network are anticipated to propel Solana’s growth exponentially. The Solana coin is anticipated to attain its highest anticipated value of $246.07 by the year 2030. 

There is comparatively less risk despite the market volatility, given that the Solana blockchain could develop into a robust network by 2030. As Solana obtains traction among businesses and individuals for decentralized applications and non-fungible tokens, the demand for Solana tokens will likely increase dramatically, causing their prices to soar.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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