Solana (SOL), the native cryptocurrency of the high layer-1 Solana blockchain protocol, has seen a massive 16% bounce from intra-day lows in the $85 area, and was last trading slightly back to the north of the psychologically important $100 level.
Despite the stunning recovery in the last few hours, the cryptocurrency is still trading around 5% lower on the day.
Rumours and speculation that the US SEC may delay the approval of spot Bitcoin ETFs this month fuelled a flash crash in the cryptocurrency earlier in the day.
The quick price drop saw leveraged long SOL positions in the futures market worth over $26 million wiped out on Wednesday, the biggest long liquidation event for at least three months, as per data presented by crypto derivatives data analytics website coinglass.com.
The anticipated approval of spot Bitcoin ETFs by the SEC, which would open the door to floods of institutional investment into the broader crypto market, has been a key theme driving the recent bull run seen across crypto.
Despite its brief tumble back below $100, SOL is still up more than 5x versus its September lows in the $17 area.
Another factor perhaps contributing to the broad crypto market downside on Wednesday could be headwinds coming from traditional asset markets – US stock prices have been falling this week, while US yields and the US Dollar Index (DXY) have been rising, as traders seemingly fret that they may have gone too far betting on Fed interest rate cuts towards the end of last year.
That being said, US ISM Manufacturing PMI data released on Wednesday was weak and indicated continued deflation, so rate-cut bets should remain robust ahead of Friday’s US jobs report.
Solana traders will continue to monitor the Bitcoin ETF situation and broader macro backdrop.
Price Prediction – Where Next For Solana (SOL)?
Solana’s strong recovery back above $100 shows that, despite the crypto market remaining vulnerable thanks to Bitcoin ETF uncertainty, dip buying appetite remains strong.
Given the cryptocurrency’s strong price momentum, Solana price predictions are likely to remain bullish.
A quick look at the SOL chart shows that the cryptocurrency is still very much in the uptrend that began in September.
Assuming that on-chain trends continue to point towards fast adoption of the Solana blockchain – as per data presented by The Block, active addresses, new addresses and value moved on chain all spiked in December, which analysts put down to meme coin trading and airdrop hunting – SOL could well hit its April 2022 highs above $140 and even challenge its all-time highs at $260 in early 2024.
Crypto Alternatives to Consider
Solana (SOL) could offer huge potential returns but also comes with a lot of risk.
For those looking for a better probability of near-term gains, an alternative high-risk, high-reward investment strategy to consider is getting involved in crypto presales.
This is where investors buy the tokens of upstart crypto projects to help fund their development.
These tokens are nearly always sold cheaply, and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
Here is a list of 15 of what the project deems as the best crypto presales of 2023.
See the 15 Cryptocurrencies
Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilize affiliate links within our content, and receive commission.
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