On September 5, 2023, Solana announced a partnership with VISA, with USDC being native to the chain. This was supposed to be bullish news for $SOL and the Solana ecosystem. What has happened since then?
The price of $SOL has since dropped by 15.2% since the minute that announcement was made. With all the bullish tweets that followed that announcement, it's been down only since then.
This leads to two questions that will be answered in this article:
What is the short term forecast for the price of SOL?
What will happen to Solana and SOL in the future?
Short-term Price Forecast For SOL
In plain truth, it doesn't look good, for many reasons. The two main reasons are:
Price action of SOL
FTX liquidating SOL on balance sheet
🔸Price Action: As you can see from the chart above, SOL is within a 10-month range between $29 and $14. On July 14, the price tried to break out of the range but failed, leading to a fake out.
As a result, SOL is moving back down the range. It didn't even stop at midrange. It's just been down since. From a pure price action point of view, SOL is likely to tag the range lows at $14.
At best, it will get to $16, since we have seen some reactions around that price range in the past.
🔸FTX Liquidation: On September 6, FTX tweeted that they have moved tokens to their native blockchains which are expected to be sold, pending approval that should be given on September 13.
As seen from the announcement above, SOL was the only crypto asset mentioned, because it constitutes a large part of the FTX balance sheet. Some people estimate this to be in the region of $700 million.
This news led to a drop in the price of SOL, and the price will still drop further when the selling begins. No one knows if this will be a single sell order, an OCT, or a trailing sell order. What we do know is that the sale will happen.
What Is The Future Of SOL and Solana?
While short term price action may not look good, the same cannot be said for the long-term future of the ecosystem and its shiny coin.
Solana has some of the best developers
It has one of the fastest chain that will scale over time
The charts looks set for a run up after taking out the low range
Solana has some of the strongest partnerships with Web3 and Web2 companies
Yes, Solana is going nowhere, and $SOL will be fine long-term. If you are patient enough, you will be among those who will buy the lows. And if you have a strong diamond hand, you will be among the few who will reap the gains over the next few years.
What do you think of my analysis? Let me hear from you. Are you bullish or bearish SOL? Share your views in the comments section below.
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