News that Solana Labs, the company behind the development of the smart-contract-enabled, high-performance Solana blockchain, will launch its crypto-integrated Android mobile phone on the 8th of May has failed to boost the Solana (SOL) price on Friday.
After hitting fresh highs since mid-February in the mid-$25s per token earlier in the session, SOL was last changing hands just above the $24 level, down a little over 1.0% on the day.
Solana’s web3-focused mobile is called Saga and pre-ordered devices are already being shipped. The highs specification phone will costs around $1,000 and duplicate as a hardware wallet.
The modest pullback in the SOL price comes back after Bitcoin and Ether also fall back slightly from multi-month highs hit earlier in the session above the $31,000 and $2,100 levels respectively.
Major cryptocurrencies have been performing well recently, with Solana still up over 14% this month and the likes of Bitcoin and Ether also nursing impressive recent gains.
Friday’s pullback should thus be viewed as little more than some short-term profit-taking.
Price Prediction – Where Next for Solana (SOL)?
Despite still trading about 10% down versus earlier annual highs around $27, Solana’s outlook looks upbeat.
The cryptocurrency recently broke to the north of an important technical structure that has been in play since last August and also broke convincingly above a cloud of resistance in the form of its major moving averages, all of which currently sit in the $21-22 area.
If SOL can now break above the key long-term support-turned-resistance zone in the $26-27 area, a test of last September and November’s highs in the $39 area become a strong possibility, which would mark a further 60% gain from current levels.
If SOL/USD could push above here, a retest of last August highs around $48 would be on the cards, marking a further 25% in potential gains.
Can Solana (SOL) Hit $1,000 in 2023?
Its not just the technicals that are looking good for Solana.
While the Solana blockchain’s daily revenues remain a tad lower versus their pre-FTX collapse levels, they remain at healthy levels, as do daily active user numbers.
As the broader crypto bull market continues, more and more users are likely to flock back to the network as demand for Decentralized Finance (DeFi) returns.
And, at this point, with Bitcoin and Ethereum both up in the 70-80% region for the year, most are expecting the crypto bull market to continue.
That’s largely thanks to expectations that macro conditions will continue to become more favorable – US inflation continues to drop and the economy is weakening, raising the risk of a recession later this year and increasingly the likelihood that the Fed soon embarks on an interest rate cutting cycle.
If Solana was to break to the north of resistance around $48 in the coming months, that would open the door to a rapid potential run higher towards $76, which would mark gains of more than 3x from current levels.
But can Solana hit new all-time highs above $259 in 2023?
Could it even hit $1,000 per token this year?
Well, the first thing to say is that nothing is impossible in cryptocurrency markets.
In less than a month in August to September 2021, Solana enjoyed nearly 5x gains from around $50 per token to around $215.
If Solana could match this pace of gains for a string of three months, it could theoretically achieve the more than 10x gain required to hit a new all-time high this year.
Hitting $1,000 would require gains to the north of 40x versus current levels.
Such a move should not be ruled out for the years ahead, particularly if 1) Solana reclaims its status as a DeFi powerhouse amongst layer-1 blockchain protocols, 2) its mobile launch is a major success and 3) we see the likes of Bitcoin reaching into the mid-upper $100,000s and Ether surpassing $10,000.
But bulls will likely need to be patient, as while Solana could certainly post decent exponential gains this year, 40x might be asking for too much.
Credit: Source link
