Disclaimer: The information presented does not constitute financial, investment, trading or other advice and represents the opinion of the author only.
Despite all the turbulence that Solana (SOL) has witnessed over the past six months, it remains one of the top 10 assets by market capitalization in the crypto sphere. This speaks volumes about the confidence investors and holders have in Solana, dubbed the “Ethereum killer” by some of its most ardent users.
This was reflected well on the price charts. Heading into 2023, SOL was hovering around the $10 support zone. It was already struggling with a downtrend that dated back to November 2021 when SOL was trading at $200. Just as investors began pricing in further losses in the crypto market in January, Bitcoin began to climb past $17,000 and shifted short-term sentiment to bullish.
Solana took massive advantage of this swing and saw gains of 175% in 21 days. However, it was unable to break through the $26-$28 resistance zone, which has served as support since June-November 2022.
Read Solana’s [SOL] Price Prediction 2023-24
Recently, several altcoins, including Solana, were reportedly stocks in the latest report from the United States Securities and Exchange Commission (SEC). trial against Binance. The spotlight then turned to the narrative of decentralization, which is at the heart of blockchain technologies.
Meanwhile, on-chain analytics company Messari published a report last month, analyzing the degree of decentralization between the different chains. Proof of Stake (PoS) network Solana, with an overall Nakamoto coefficient of 1.9, appears to have outperformed its peers.
The most bullish scenario of 2023, according to AMBCrypto’s prediction bot, could see SOL valued at $75.5. However, we can ask another bot for its opinion on Solana’s price, network health, and trajectory after giving it a few relevant data points.
Can we convince ChatGPT to make a Solana price prediction if we give it enough information?
ChatGPT has been a remarkable chatbot and the updates of last month made ChatGPT 4.0 quite impressive. He’s a powerful learning tool and he’s been trained on a wide range of subjects. Still, it must be said that the bot is designed to mimic a human and is not necessarily guaranteed to be factually accurate. The jailbreak version of ChatGPT would probably be even more imprecise because it is specifically instructed not to say no to anything the user asks.
And yet, it is possible to get guesses from the chatbot about what the future might hold if given an idea of what the present and recent past have been like.
So, what does ChatGPT think of Solana? Does she see a path to recovery from her recent setbacks? Based on transaction fees and transaction speeds, ChatGPT seems to think Solana will be an Ethereum killer.
Source: Open AI
We have yet to brief him on the challenges Solana and SOL investors have faced in recent months. Let’s start with the biggest hole in investor confidence –
FTX, where the freefall began
Sam Bankman-Fried was one of the most vocal supporters of the Solana network. He was considered a credible and smart investor and entrepreneur who was CEO of one of the biggest crypto exchanges, FTX. Even though Binance reigned supreme in terms of volume and token pairs, FTX got what it paid for. Competition is also good for the industry and serves customers.
Much has changed since then, and the SEC has accused Mr. Bankman-Fried of defrauding FTX stock investors, further alleging that he mixed FTX client funds with those of Alameda to make undisclosed venture investments. He faces more than 100 years in prison if convicted on all counts.
Not only did Solana’s reputation take a hit, but the foundation also sold a significant amount of SOL to FTX Trading and Alameda Research. This amounted to SOL 58.08 million, or 11% of the outstanding supply at the time FTX filed for bankruptcy. It was then valued at nearly $1.1 billion.
As expected, the price of Solana took a nosedive in November and fell 45% from November 11 to December 31, from $18.08 to $8. With FTX insolvency rumors circulating as of November 5, SOL had already lost 50% the previous week, when trading close to $38. This brought SOL’s total losses from November 5, 2022 to December 31, 2022 to 79.4%.
Source: Open AI
ChatGPT certainly looks bullish, and the start of 2023 has gone extraordinarily well for investors. And yet, some network issues surfaced, just as they did in 2022.
SOL gained 180% in January and February 2023, exceeding all expectations
From January 1 to February 20, Solana gained 179.88% on the price charts and fell from $9.69 to $27.12. This explosive rally was attributed in part to Bonk, a meme coin introduced to the Solana ecosystem modeled after Shiba Inu.
Part of the total supply of 99 trillion was airdropped into the wallets of Solana users in December. The number of transactions per day had been on a downward trend in the second half of December, but this started to recover in early January.
Is your wallet green? Check out the Solana Profit Calculator
Soon, transactions accelerated once again. It has been reported that the introduction of the fun coin has done a lot to steer the community away from the dark and depressing shadow that the FTX debacle has cast over Solana.
When fed with on-chain data as well as price trends in recent months, the jailbroken version of ChatGPT was able to form an opinion on Solana’s performance in the second quarter of 2023.
Source: Open AI
The network has faced troublesome outages in recent months, and investor confidence is likely to be badly shaken. The chatbot accepted.
Source: Open AI
When forced to guess Solana’s price in June, he said:
Source: Open AI
The $25 prediction might not be too far off the mark in the coming weeks, especially if Bitcoin bulls can push BTC above the $29.2,000 mark. Predictions and guesswork aside, what does the price analysis tell us about Solana?
Some imbalances remain in the south
Source: SOL/USD, TradingView
Several altcoins, including Solana (SOL), were labeled as stocks in the latest report from the United States Securities & Exchange Commission (SEC). trial against Binance.
SOL’s value has fallen nearly 35% since the SEC’s enforcement action against Coinbase and Binance. At press time, the token was trading at $14.55, with a market cap of $5.8 billion and a 24-hour trading volume of $246 million.
The indicators on the chart reflected the weariness of the token. Its Relative Strength Index (RSI) sits just above the neutral level of 50.
Despite massive setbacks, development on multiple fronts such as Solana Saga, NFT Marketplace, and Partnerships has continued unflinchingly.
In hindsight, the last few months could turn out to have been a huge New Year’s sell-off on SOL. However, investors should temper their expectations as a crypto bull market is not yet in sight.