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Solana joins ranks of FTT, LUNA with SOL value down 97% from peak — Is a rebound potential?

Solana (SOL), the cryptocurrency as soon as supported by Sam Bankman-Fried, pared some losses on Dec. 30, a day after falling to its lowest stage since February 2021.

Solana value down 97% from November 2021 peak 

On the each day chart, SOL’s value rebounded to round $10.25, up over 20% from its earlier day’s low of roughly $8. 

SOL/USD weekly value chart. Supply: TradingView

However, the intraday restoration did little to offset the general bear pattern — down 97% from its document peak of $267.50 in November 2021, and down over 20% up to now week. 

However whereas the yr has been brutal for markets, Solana now joins the ranks of the worst-performing tokens of 2022, particularly FTX Token and LUNA, that are down round 98%. 

FTT (pink) vs. LUNA (inexperienced) vs. SOL (blue) efficiency since November 2021. Supply: TradingView

SOL value might get well 50%

Nonetheless, the newest Solana value rebound hints at the potential for extra upside heading into 2023.

That’s primarily as a result of Doji — a candlestick sample that kinds when the asset opens and closes close to or on the similar stage in a particular timeframe. SOL shaped what seemed to be a “commonplace Doji” on its each day chart on Dec. 29.

Conventional analysts think about a Doji as a possible reversal candlestick sample, given it reveals that bears and bulls are at a a stalemate. Subsequently, from a technical perspective, a Doji formation throughout an extended uptrend interval might counsel a bearish reversal within the making, and vice versa.

SOL’s Doji has appeared after an extended downtrend interval, as proven within the each day chart beneath. That, coupled with the token’s oversold (<30) relative energy index studying, means that an prolonged bullish reversal could occur in 2023.

SOL/USD each day value chart that includes Doji candlestick sample. Supply: TradingView

SOL’s main upside goal appears to be like to be round $15, up over 50% from present value ranges. The $15 stage has served as resistance since Nov. 13, 2022. 

Battling damaging fundamentals

Solana has emerged as certainly one of 2022’s worst-performing cryptocurrencies, with its year-to-date losses close to 97%. Compared, the overall cryptocurrency market cap has dropped onl 65% in the identical interval.

Associated: ‘Every thing bubble’ bursts: Worst yr for US shares and bonds since 1932

A number of causes might clarify SOL’s underperformance in 2022 equivalent to a hawkish Fed, Solana’s recurrent downtimes, a $200 million hack on certainly one of its related wallets, and possible FTX publicity.

Earlier in December, Anatoly Yakovenko, the co-founder of Solana Labs Inc., clarified that almost 80% of initiatives on Solana’s blockchain had no publicity in any respect to FTX, stating that there is extra to their platform than the defunct crypto trade.

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a call.