Solana Coin (SOL) Price Prediction for 2023: Is Solana Coin (SOL) a Good Investment?
Grayscale’s decision to include Solana in its portfolio might influence institutional investors to consider this coin a potential investment opportunity. On the other hand, Solana showed incredible growth in 2021. In addition, its layer one protocol has become a rival to the smart contract platform Ethereum where Solana provides the fastest public ledgers at a meager cost.
More than 1 million active users in the Solana network came from DeFi, NFTs, Web 3, and other industries. The price of Solana’s native token SOL works as a fee to stake tokens that have already surged more than 10,000% year over year.
The current circulating supply of Solana is 305,642,202.72 SOL with a market cap of approximately $70 billion. Despite its market value, Solana made a position within its top 5 cryptocurrencies. Although a massive user adoption, this coin has some risks. According to some analysts, SOL is already overpriced in the higher time frames with the possibility of network outages.
So, Is Solana Coin (SOL) a good investment?
Let’s see the Solana Coin (SOL) price prediction from Technical Analysis SOL:
Solana (SOL) Bullish Trend is Solid
In the technical chart, the SOL/USDT bullish trend is solid where the current price is moving up by creating higher highs. The price remained steady above the dynamic 20 EMA from August 2021 and reached the all-time high at 259.90 level in November. Later on, the price corrected lower where the bearish pressure was very corrective. Moreover, bears pushed the price below the dynamic 20 EMA but failed to hold the momentum below the 184.20 level. The double bottom formation at the 184.20 event level signifies buyers’ presence in the price that may continue the broader market trend.
The above image shows how the MACD Histogram showed PNP formation where the current price moved above the dynamic 20 EMA with a bullish daily close. Based on this price formation, bulls are more likely to take the price up beyond the all-time high level. In that case, the primary target would be the 307.90 level, which is 161.8% Fibonacci Extension of the current bearish correction. On the other hand, close attention is needed if the price moves below the 184.20 level with a bearish daily close. In that case, the Solana coin (SOL) price today may show a deep correction towards the 120.00 area.
SOL/USDT Ichimoku Cloud Analysis
According to the Ichimoku Cloud on the H4 timeframe, SOL/USDT market sentiment shifted from bearish to bullish as soon as the price rejected the 184.20 event level and moved above the Kumo Cloud with strong bullish pressure. Moreover, in the future cloud, Senkou Span A is above Senkou Span B and aiming higher with an intense buying pressure. On the other hand, the lagging span is also above the price and moving up.
The above image shows how the trader’s dynamic index aims higher where the TDI line is above 50 levels. Meanwhile, the dynamic Tenkan Sen and Kijun Sen are below the current price and working as strong support.
Based on the H4 SOL coin price prediction, a bearish correction is possible towards the dynamic Kijun Sen. However, any bullish rejection from 225.00 to 212.00 would be a potential buying opportunity in this pair. On the other hand, a break below the Kumo Cloud with a bearish H4 close may alter the current market structure and initiate a bearish movement towards the 184.00 area.
SOL/USDT Intraday Price Action Analysis
In the intraday chart, SOLD/USDT is trading with a solid bullish momentum where the current price is trading above the dynamic 20 EMA and weekly VWAP. Moreover, the intraday high volume levels made steady higher highs, where the most recent price is above the latest high volume level of 228.36. On the other hand, the volume bar remains higher from the beginning of December, indicating a higher trading activity.
The above image shows how the price formed an intraday rejection at the 240.00 area where the MACD Histogram moved to the zero level. In that case, a bearish correction is pending in the price towards the dynamic 20 EMA. Based on the current price action, 220.00 to 212.12 would be a possible bullish reversal zone from where the broader bullish trend may resume. On the other hand, a steady break below the 212.00 level would eliminate the buying opportunity until the price reaches the 184.00 level.
Is Solana Coin (SOL) A Buy?
According to the Solana Coin (SOL) price prediction, the broader market direction is still bullish, where any bullish rejection from intraday price would be a decent buying opportunity. On the other hand, investors need close attention to the price if it breaks below the 212.00 level. Another buying opportunity may be found at the 184.00 level, depending on the intraday price action.
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