The new year started very bullish for the crypto market. After the bear market in 2022, almost all of the top 100 currencies recorded huge price increases in the first few weeks of 2023.
Solana’s price trend is particularly noticeable. Since the $8 drop in 2022, the SOL/USD rate has tripled in a short period of time. The gains this year alone are 150 percent.
Solana is back among the top 10 cryptocurrencies
Among the top 50 cryptocurrencies by market cap, no other coin has managed to mount such an explosive rally, although many other tokens are posting high double-digit gains in 2023. With this, SOL makes a big leap in the crypto ranking and is now back in the top 10 with a market valuation of nearly $9 billion. Solana recently threatened to drop out of the top 20, as reported by kryptoszene.de.
As of January 2 of this year, kryptoszene.de analyzed that the price of SOL has fallen below $10 and investors may now have a special opportunity to buy Solana, as the price has fallen 97 percent below the all-time highs in 2021. Anyone who invested in the cryptocurrency at this point can look forward to huge returns.
Is the opportunity to buy Solana cheap lost? Is it still worth getting into because the rally will continue? Or is there a new fix, perhaps, that will allow interested parties to get the ticket cheaper again?
Kryptoszene.de uses the current charts and key indicators to analyze where the price of SOL/USD could move in the short and medium term. The latest price forecasts for 2023 are also worth a look.
Parabolic rise: SOL rises from $8 to $25
On the small 1-hour chart, you can see that the price of SOL/USD started to go up parabolically on December 30, 2022. From around $8, SOL/USD quickly rose to $10 and showed a small step on the side in this price range before emerging more than 40 percent from the January 2-4 parabolic curve support.
After another period of consolidation, it then moved higher to $17 on January 9, where the price was able, after moving sideways again, to use the support of the parabolic curve to go to $25.
The next step on the sidelines is currently pending, which could continue until January 18. Then the price would hit the parabolic curve again and have to decide whether to continue the bull run with another steep climb or break this key support.
A sharp correction for Solana is now possible
Such parabolic upward trends can be seen time and time again, especially in the Altcoin market. This extremely fast and sharp increase promises high price gains in the short term, but the correction is usually strong as soon as support is lost. Prices then often drop like a waterfall. Such a scenario could also threaten SOL investors if the parabolic curve is no longer maintained.
Technical analysis of the larger daily chart also shows that SOL buyers should be careful now. Because the course has reached an important resistance line. This declining line was a key support zone for SOL/USD in the 2021 bull market from where SOL began its rally to all-time highs around $260.
However, the price broke below this support in May 2022 and has been a key resistance for SOL/USD since then. At the beginning of November, the course failed in an attempt to overcome this resistance. A similar situation may now be imminent and a correction initiated.
However, SOL/USD is still testing the resistance. If the altcoin price manages to overcome this and reconfirm it as support with a retest, that would be a very bullish sign for the next Solana trend in 2023.
Key chart indicators for Solana: No confirmation of bull run
Key technical indicators have yet to confirm a new Solana bull run, even if the momentum is positive. For example, there has not yet been a golden cross where the moving average price lines of the past 50 and 200 days cross in a bullish fashion. On February 3 the opposite happened – a death cross – since then there has been a huge correction in the price.
A bullish flip of the highly relevant EMA Ribbons, a series of moving average price lines, has not yet occurred either. As long as the lines drawn in yellow in the chart image are at the top, this indicates a bullish upward movement. However, when the red lines are up, the bears usually still dominate the market.
For now, the bullish flip could be soon. However, it is also possible that the situation will arise from the beginning of November 2022 again. Back then, the FTX crash blocked the bullish flip and a massive correction followed. However, no such Black Swan Event is currently in sight.
SOL 2023 forecast: prices are expected between 4 and 50 dollars
Analysts’ price forecasts for Solana in 2023 are different. Digital Bonn Price estimates that SOL/USD will break the $50 mark this year. That is another increase of more than 100 percent on the current rate. Financial blog Changelly is more cautious and expects a maximum price of just under $34 this year. Digital Coin Price is also predicting a maximum price below $40 in 2023.
Meanwhile, Wallet Investor estimates that the price of SOL will drop below $4 this year. That would be another sharp correction of more than 80 percent to the current price.
Overall, the SOL course is at an important point. A decision could already be made in the coming days whether a major correction is coming or whether the promotion will last.
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Cryptocurrencies with potential in 2023
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