Has The Solana Breakpoint Conference Helped SOL Price?
The 2022 crypto winter was followed by a recovery year in 2023, where most coins and tokens outperformed themselves this year, growing investor confidence and developing Web 3.0 projects.
However, it was not all good news for all cryptos, as Solana started trembling in the last quarter of the year, and it seems that the price action is not on par with the massive developments happening on the network.
Solana’s breakpoint conference might have brought some positive price action, but for how long? And is Solana dead already? Let’s find out.
Solana Performance
SOL was founded in 2020 as one of the most promising crypto projects and tokens. The project was designed fundamentally to provide DeFi solutions to web3 projects and help developers create and operate with digital assets on its network.
Solana has its own blockchain, which supports proof-of-concept and proof-of-history models, using its native token, SOL, as the central cryptocurrency for transactions and rewards.
Solana started the year on a positive note, doubling its market value from $9 to $18 in two weeks in January and finishing the month strong with 166% price growth. However, this was almost the highest figure the token had reached in 2023 until October when the Solana news for the conference initiated a price rally.
Solana Breakpoint Conference
The Solana breakpoint 4-day conference started on 30 October and was described as successful by those who attended the event. The conference was a platform for dApp developers and projects to take over the stage and share their innovations, besides sharing the network update with stakeholders and the SOL community.
On the backside of things, the SOL price picked up a positive tick right off the bat, as the price crossed over the $25 threshold one week before the conference.
The conference started with the SOL price mark at $32.8 and concluded the event at $40, recording a price increase of around 25%, followed by another jump to $42 the following day.
However, after the conference price rally cooled off, the price started trembling and lost its momentum as it dropped down to $40 and $39.
This price action was anticipated because last year’s breakpoint conference in 2022 was followed by a 20% crash. However, things seem a little different this year as investors continue a bullish movement.
Will Solana Recover
After the price slump following the conference, the Solana network is experiencing a positive trend, with most signals showing a strong buy movement and a greed indicator over 80% as “Extremely Greed.”
We analyse this price action to estimate how this bullish movement prevails, using the exponential moving averages on three intervals to measure the strength of this trend.
Start off by comparing the 10-day EMA line to the 50-day EMA line to measure the short-term trends.
After running under the 50-day line most of the time this year, and especially since August, in October, the 10-day recorded a break above the 50-day purple line with a strong take-off upwards.
SOL started October at $21 and reached new highs by the end of the month at $38. However, this trend did not stop as the price continued moving upwards and reached $48, which was not achieved since August 2022.
The divergence kept increasing between the two lines, indicating that the SOL price rally is more likely to continue for the coming few days.
Additionally, we compared the 50-day line to the 200-day EMA indicator to measure the potential trend in the long term.
Here, we see a breakthrough above the 200-day line since the beginning of October, which picked up a strong momentum from the last week of October and the beginning of November.
The 10-day EMA line skyrocketed and moved far away from the 200-day line, which indicates a strong trend prevailing for longer than estimated.
This price pickup is accompanied by price record levels towards $47 and $48, which might be the new support level for SOL.
Is Solana a Good Investment?
Solana has always been the go-to for web3 investors and digital creators because the SOL ecosystem provides the perfect environment for creating, operating, and sharing digital assets and decentralised applications.
Nevertheless, with the latest price action with the SOL price reaching new highs, it might be the perfect time to invest in this currency.
The price trend is expected to maintain its positive movement for several days or maybe weeks, making a valid opportunity to invest and a great starting point for the token to seek new levels.
Solana Price Prediction 2040
The last price action after Solana Breakpoint sent the investors’ expectations over the roof, with some of them expecting to reach $100 by the end of the year.
Historical analysis shows that after a significant price surge at the beginning of 2023, marking +160% growth, the price stagnated for around ten months. Nothing stops the scenario from happening again, and the SOL price rally may lose momentum.
However, if SOL keeps growing at the same rate we saw this year, we are more likely to see Solana’s market price reaching $100 sooner than expected and maybe before 2040.
