Solana overcomes FTX fiasco — SOL price gains 100% in Q1


The value of Solana (SOL) fell almost 95% in 2022, partly on account of its affiliation with tainted crypto entrepreneur Sam Bankman-Fried and his collapsed ventures, FTX and Alameda Research. However to date in 2023, issues have improved for SOL’s value.

Solana’s value doubles in Q1/2023

Solana’s value has risen 104% to round $20.60 per SOL within the first quarter of 2023, the best features in comparison with any cryptocurrency within the high 25, together with Bitcoin (BTC) and Ether (ETH).

Related articles

Solana beats top-ranking property’ Q1/2023 returns. Supply: Messari

In truth, January was Solana’s best month since August 2021 when it comes to value efficiency.

SOL’s value rallied by about 140% in it with none main fundamentals that might have pushed the charges up. Nonetheless, the SOL/USD pair grew to become excessively oversold in December 2022, which can have influenced merchants to buy the dip

The rally additionally coincided with Messari’s analysis of the Solana ecosystem after the FTX collapse, exhibiting its staking and decentralization had been steady and really improved its place after the FTX fiasco.

“Solana will proceed to launch a mess of initiatives, together with community upgrades, ecosystem developments, and group efforts, to call just a few,” wrote James Stautman, a researcher at Messari, including:

“After a tumultuous yr fraught with one problem after one other, gentle seems to be on the finish of the tunnel heading into 2023.”

In different phrases, the market might have overreacted to Solana’s ties with Bankman-Fried in This fall of final yr, leading to a pointy rebound.

What’s subsequent for SOL’s value?

Solana underperformed the broader crypto market in February and March after SOL’s January spike left it technically overbought.

Associated: Solana plans to improve its blockchain: Here’s how

Solana’s value misplaced about 40% from the January peak. Its market dominance (SOL.D) additionally dropped from 0.98% in January to 0.69% in March, suggesting that merchants rotated capital elsewhere. 

SOL.D month-to-month value chart. Supply: TradingView

However, as of March 31, Solana is buying and selling above two technical help ranges: a horizontal trendline that has capped SOL’s draw back makes an attempt principally all through Q1/2023 and an ascending trendline that served as backup help in early March when the horizontal one failed.

These two help ranges have converged. Due to this fact, SOL/USD now eyes a short-term bounce from there towards a multi-month help/resistance flip degree of round $26.50, as proven under. 

SOL/USD day by day value chart. Supply: TradingView

That leaves Solana with a 30% upside prospect in April. Conversely, a drop under the 2 help ranges may have SOL’s value retest its March low of $16 as the subsequent draw back goal.

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a choice.