Solana Price Prediction as $500 Million Trading Volume Floods In – SOL Pump Incoming?
The SOL token, which powers the Solana smart contracts ecosystem, is currently trading at $20.00, 60% above the lowest price point in 2022, and 30% above the lows experienced in March 2023, indicating a significant upward trend.
Solana price plunged by approximately 95% in 2022 due to the longstanding crypto winter and a tainted association of the ecosystem with the collapsed FTX exchange, its founder Sam Bankman-Fried, and Alameda Research, which was among the leading crypto market makers.
However, Solana has shown exemplary strength and performance in 2023 where it has traded highs around $27.00, although the token pulled back in March, testing support at $16.00 before reversing the trend to trade slightly above $20.00 at the time of writing.
Experts believe Solana’s performance dates back to December when the token became significantly oversold, prompting investors to buy the dip. On-chain and fundamental data from Messari revealed the Solana ecosystem generally remained stable during FTX’s messy collapse, including its staking and decentralized finance (DeFi) positions.
“Solana will continue to release a multitude of initiatives, including network upgrades, ecosystem developments, and community efforts, to name a few,” James Stautman, a researcher at Messari said in the report about Solana’s performance.
Stautman’s statement implied that the market may have overreacted to the implosion of FTX, leading to a sharp rebound in Solana price bolstered by a generally up-trending crypto market in 2023.
“After a tumultuous year fraught with one challenge after another, light appears to be at the end of the tunnel heading into 2023,” Stautman added.
Meanwhile, Solana price preparing for another substantial breakout based on its
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