Solana’s Future in Question as SEC Rejects: Can SOL Recover from Recent Setback?

Solana’s Price Journey

Solana’s (SOL) token faced a significant drop in value from over $200 in 2021 to under $10 in 2022. It has recovered in recent months and is now worth over $100. Despite criticism for its previous network outages and close relationship with Sam Bankman-Fried, traders see SOL’s recent price gains as a sign of increased confidence in the ecosystem.

Causes of SOL Price Surge

Some analysts attribute SOL’s surge to the airdrop frenzy that took place on the network after the newly launched JITO token was listed on major centralized exchanges at the start of December 2023.

• First few hours of trading saw JITO achieve a market capitalization of over $300 million.
• BONK meme coin on Dec. 14, 2023, caused Solana’s Saga phone to sell out as some airdrops targeted mobile phone owners.
• Despite network outages in competing blockchains, Solana’s DApps ecosystem experienced a surge in volume.

After the initial rush for Solana SPL tokens subsided, resulting in losses for Jito (JTO), DogWifHat (WIF), and BONK, investors are questioning whether there is any other support for SOL’s $42 billion valuation, making it the fourth-largest cryptocurrency, excluding stablecoins.

Technical Analysis & Prediction of SOL Coin Price

Currently, Solana dropped 22% in 11 days after reaching $126 on the day of December. The reason is clear; the SEC is expected to disapprove the Bitcoin Spot ETF, spreading like fire in the crypto world as all the coins are going down.

However, some experts remain bullish as its current price of $92 represents close to a 0.6 times increase from the previous month. The current support level of SOL is at $79.8, while the current resistance is at $125.

Crypto traders tend to quickly change their portfolios when better opportunities arise, leading Solana investors to question whether there is still a chance for a breakout at the current resistance level.

Conclusion

Solana’s price has seen a drop of more than 20% since the start of this year. Analysts predict that the drop is attributed to the Matrixport report about bitcoin spot ETF approval. The current price is near the support level of $79.8.

Technical Levels

Support Levels: $79.8 and $51.8.

Resistance Levels: $125 and $199.