Solana price analysis and forecasts for 2024

2023 has been a good year for Solana Coin, contrary to expectations. It was expected that the Solana currency would completely collapse and end this year.
This is due to the currency’s strong connection to the central FTX platform, which was primarily responsible for financing and supporting the Solana Blockchain.
But it seems that the currency has recovered, so let us learn more about Solana’s price analysis and what are the most important expectations for the currency in the coming period.

Solana price analysis

The first thing before analyzing Solana price is that we should know what Solana coin is.

In a quick summary, Solana is considered a first-class blockchain. This means that the coin is the base currency of this network.
The purpose of the network is to provide an alternative to the Ethereum network in order to develop, build and program smart contracts and also complete financial transactions quickly and without high fees. Gas fees on the network are very low.

So far, the Solana blockchain is characterized as one of the fastest and cheapest networks in the crypto world.
This is what has set it apart so strongly in the 2021 bull market. The price of the currency has doubled, from less than $1 in 2020 to more than $200 per coin in 2021.

Solana price fall in 2022

Solana

Since the beginning of 2022, Solana has been under a lot of aggressive selling pressure.
The price of the currency at the beginning of 2022 was $180 per coin. But it suffered a very violent fall that caused it to lose more than 90% of its price value in 2022.

The price of the currency fell below $10 per coin after the FTX platform collapsed. but why?

This is because Alameda, the investment arm of FTX, was the largest investor in Solana and its ecosystem.
Therefore, it was logical for the Authority to sell a lot of its currencies in order to pay off the debts of the FTX platform.

Investors also linked the currency to the FTX network, and thus the currency lost the confidence of many investors.
Many people exited the currency at the end of 2022, and thus it was a very bad and difficult year for the currency.
The bottom of the currency may be formed at the end of 2022, especially in December, before it begins to rebound upward.

Solana price forecast in 2023

Solana price forecasts in 2023 were very harsh. Everyone expected the end of this network forever. This is due to several factors.

The Solana network has been popular and known for its speed. But she was also famous for being disconnected from the Internet often.
This is bad for any blockchain network since all operations on the network stop once it is disconnected from the Internet.

But it later became clear that the Alameda Authority was responsible for these cuts because they wanted to reduce the price of the currency in order to buy it at a low price.
The strength of the network has been demonstrated in 2023 as it has not been interrupted almost once throughout the year since FTX was out of the picture.

This restored confidence in the network from investors who started pumping money back into the network.
This is why the forecast for Solana’s price forecast in 2023 has reversed.
While everyone was expecting the end of the network and the price of the currency to fall below $1, the price rose and broke the first psychological barrier at $20, then quickly broke the psychological barrier at $50 by October.

Now Solana is once again one of the largest currencies that will compete for a strong position in the upcoming bullish cryptocurrency market.

Solana Ecosystem

The Solana ecosystem is not as large as the Ethereum ecosystem. But it is considered one of the most famous alternative systems to the Ethereum system.
Currently, there are approximately more than 400 decentralized platforms and applications on the network. These applications vary in nature, ranging from blockchain games to trading and lending platforms, among others.

Solana price forecast for the end of 2023

We will analyze Solana price on a daily and weekly basis. This is because we are more interested in the long term view than the short view.

The general rule always in altcoins is that it is very difficult to analyze their price in the short term.
This is because the daily trading volume is very low and thus the chart can be easily controlled.

Solana Daily

On the daily frame, we can notice that Solana’s price forecast says that the trend is currently strongly upward.
But it is clear that the price must undergo a price correction.
The price continued to rise for about five consecutive weeks until it broke the barrier of $60 per currency. Here we can expect one of two things:

  1. The price will recover around the support point between $50 and $48, then continue to rise again until it reaches the resistance area at $140, which it last reached in April 2022.
  2. The price fails to convert the previous resistance point at $48 into a support point and thus falls below it. Here, confirmation of failure to break through will be via a weekly close below this point. Here we can expect to revisit the $30 point again.

But always remember when you analyze alternative currencies not to rely more on the price, but rather on psychological barriers.
This means looking at numbers like $30, $40, or $50 more than anything else.
Especially 50, since this is a strong psychological barrier, as it is considered 50% out of 100. For this reason, we place great weight on the $50 point.

Solana price forecast in 2024

If we look at the weekly frame, we can notice that Solana’s price is also currently on a very strong rise.

Solana Weekly

But notice how until now the price is facing very strong resistance at the previous support areas that existed in April 2022 at the $60 point.

If the price overcomes it and closes above it, this means the rise continues. Here the next obstacle will be at the psychological resistance point at $100.

But could the price reach $250 again? We cannot give a definite answer here since this depends on different things:

  • The crypto community must feel that there is no risk to the network. This means that the selling pressure coming from Alameda Authority must be eliminated. The authority wants to sell all its Solana coins in order to pay off the debts of the FTX platform. This will undoubtedly create strong selling pressure, but so far the buying pressure appears to be much stronger.
  • The Solana ecosystem will be back in the spotlight again, especially after the RLB platform was moved to the Ethereum ecosystem. This will increase pressure on network usage, and thus this will represent buying pressure on Solana coin.

Understand the rules of the game

Finally, you must understand the rules of the crypto trading game well. It is never a requirement for Solana’s currency to increase like crazy.
Its good performance in 2021 means nothing at all. But what is important here is that the currency safely passed the bloody bear market in 2022.

This is what makes us believe that it will compete for a strong position in the upcoming market. But can it maintain its place among the top ten cryptocurrency projects? So far we don’t know.

Recently, projects such as SUI have emerged claiming that they will destroy the Solana blockchain. The rule is always that capital in crypto goes to new projects, not old ones.
But this does not mean at all that Solana will not increase its price. Perhaps the currency will succeed in breaking the $250 barrier and rise to $1,000 in the next bull market.

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