Solana is a fast, scalable dApps and trading platform which can process up to 60K transactions per second. At the time of writing this analysis, SOL/USD has plunged 50% from its support of $30 after the FTX liquidity crisis. Now, it is trading around $14.19, forming support in the lower Bollinger Bands.
Moreover, other technical indicators like MACD and RSI are neutral that does not hint at an uptrend, at least for the short term. We think traders should wait during this crucial level because if it breaks the support of $14, it will be the best time to accumulate Solana at a much lower price considering the chance of an uptrend is less.
It is interesting to note how SOL has performed in the second half of this year. It suggests volatility because we can find an uptrend from June to August. After that, it changed the trend and consolidated at a lower level, but the fall in November was very discouraging for retail investors.
On the weekly chart, the candlesticks are forming in the baseline of the Bollinger Band, but the candle on the first week of November is crucial because it broke the lower Bollinger Band suggesting a strong downtrend for the long term. After that, it formed four weekly Doji candles that suggest indecisiveness in the market. It may regain the previous support or break the current support to form a lower low in the next few months.
Indeed, the market will be uncertain because of recession, inflation, and various other reasons, so you must keep a closer eye on your crypto portfolio, especially Solana.
Based on our SOL crypto price prediction, it is not an ideal time to invest for the long term because you might get Solana at a lower price if it breaks the support. Bigger gains come with bigger risks! So, we cannot eliminate the chance of gaining 50% if it regains the previous support of $30.
Many cryptos regained their previous support in the last two weeks. If it happens in the next few months, we can consider it as long-term bullish, which will be an ideal time to buy more SOL for the long term. Once Solana breaks the resistance of $50, it will surge much faster.