Solana price forecast 2023: Buy SOL 91 percent cheaper despite 200 percent rally?

Solana Sol

The price of the Solana course has increased dramatically in recent weeks. From a low of $8 on December 29, 2022, it has risen to more than $24 now. At best, buying Solana has brought in a 200 percent return in recent weeks.

Solana is one of the cryptocurrencies with the strongest trend so far this year. The euphoria among investors is great, but after this huge increase is it really a good time to get in? Or is it better to wait on the sidelines for a better time to buy Solana after a correction.

Solana’s current price is only a tenth of the best value

Looking at price alone, Solana seems to be still cheap despite the last week’s rally. Because in November 2021 the price was an all time high of almost $260. The current rate is just over $24 less than a tenth of that amount. Accordingly, SOL is still 91 percent away from its all-time high and the potential for further price increases appears to be there.

There is also recent news that could be bullish for the rest of Solana’s price in 2023.

Solana network to be more stable

For example, the president of high-frequency trading firm Jump Crypto, Kanav Kariya, recently said that he would improve Solana’s network infrastructure. The open source validation client Firedancer is to be used for this. In high-frequency trading, algorithms can be used to record and execute many transactions in rapid succession.

According to Kariya, Firedancer can make the Solana network much more stable and make system failures a thing of the past. In recent years, Solana has constantly faced technical problems, which has angered users and also damaged the overall image of the project. If Firedancer actually fixes this, it would be an important step for Solana’s further development.

However, this is not the only improvement that should be achieved with Firedancer. For example, high-frequency trading is optimized using C and C++, the most commonly used software languages ​​in this field. They are designed to allow finer control, more efficient memory management, and faster execution. Overall, performance, stability and efficiency could benefit from Firedancer.

Second system as backup for Solana

Recent comments from Austin Federa support that it could be a big year for Solana on a technology level as well, Head of Strategy and Communications at the Solana Foundation, fired up. Speaking to Bloomberg, he emphasized that Solana wants to focus on the fundamental developments of the network this year.

Federa focused on the new client. The second validated client is one of the biggest investments of the year. This should be a copy of the system the network is running on. In the event of a system failure, the second system can step in at any time so users don’t have any problems.

Solana network heavily used despite FTX drop

Federa also addressed the events surrounding the crypto exchange FTX that precipitated the Solana price crash in 2022. In the summer of 2020, former head of FTX Sam Bankman-Fried pushed forward with the Serum central limit order book on blockchain To establish Solana.

In the meantime, however, the code for this project would be completely re-released by the Solana community. Other developments would dissolve the current link with Sam Bankman-Fried and FTX.

He also indicated that despite the major correction in the price of SOL, interest in the network remained high. The number of active addresses and validations would prove that more people are using the Solana network than ever before.

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A quick price increase to 40 dollars is possible

According to the latest news and announcements, 2023 could see an upward trend for the Solana network, at least on a technological level. But is this also about the price? Chart technical analysis and indicators are showing hints as to where SOL/USD could be heading in the short term.

The daily chart shows that SOL/USD has currently reached a price level at $25 which was an important support zone for the price until the FTX crash in November 2022. Now, if SOL/USD manages to break this resistance , it would be a good sign for further gains. Because the next important resistance is then only in price regions more than 40 dollars. Therefore, SOL/USD could continue the rally around $15 or 60 percent.

On the other hand, it would be bearish if SOL/USD fails at the current level and it would only be a retest of the old support as a new resistance. A correction to lower price levels is then more likely.

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Indicator shows a bullish signal for Solana

The Relative Strength Index (RSI) currently appears to offer some room for another price rally. This indicator assesses whether an asset is overbought or oversold. From a value of 70, the investment is considered overbought.

After being heavily overbought ten days ago and almost reaching the 90 RSI, SOL/USD has fallen back to just below 70 and thus has upside potential again. Also, the RSI is currently lower even though the price is higher than ten days ago.

Analysts talk about a variety of research for the course. In many cases, this heralds a further rise in prices.

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Golden Cross is not shown at SOL yet

SOL/USD is still expected to break the moving average line of the EMA ribbons to the upside. In a bull market, the price usually trades above these bands. This was also the case with the Solana 2021 course. In the 2022 bear market, on the other hand, the bonds were almost consistently above the price and thus limited the upside.

On the weekly chart, however, things look different. Here the price is still below the EMA ribbons. Also, SOL/USD has yet to see a golden cross on the daily chart, which often leads to a move higher. Therefore, the green line of the moving medium would have to cross the red line from top to bottom. Solana saw the opposite of the Death Cross in February 2022, and a long period of correction followed.

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Confirm MEMAG signs in advance

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