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

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 degree since February 2021.

Solana price down 97% from November 2021 peak 

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

SOL/USD weekly price chart. Source: TradingView

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

But whereas the 12 months has been brutal for markets, Solana now joins the ranks of the worst-performing tokens of 2022, specifically FTX Token and LUNA, that are down round 98%. 

Solana joins ranks of FTT, LUNA with SOL price down 97% from peak — Is a rebound doable?
FTT (pink) vs. LUNA (inexperienced) vs. SOL (blue) efficiency since November 2021. Source: TradingView

SOL price may get well 50%

However, the most recent Solana price rebound hints on the chance of extra upside heading into 2023.

That is primarily as a result of Doji — a candlestick sample that types when the asset opens and closes close to or on the similar degree in a particular timeframe. SOL fashioned what gave the impression to be a “normal Doji” on its day by day chart on Dec. 29.

Traditional analysts think about a Doji as a potential reversal candlestick sample, given it reveals that bears and bulls are at a a stalemate. Therefore, from a technical perspective, a Doji formation throughout a lengthy uptrend interval may recommend a bearish reversal within the making, and vice versa.

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

Solana joins ranks of FTT, LUNA with SOL price down 97% from peak — Is a rebound doable?
SOL/USD day by day price chart that includes Doji candlestick sample. Source: TradingView

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

Battling destructive fundamentals

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

Related: ‘Everything bubble’ bursts: Worst 12 months for US shares and bonds since 1932

Several causes may clarify SOL’s underperformance in 2022 reminiscent of a hawkish Fed, Solana’s recurrent downtimes, a $200 million hack on one of its related wallets, and possible FTX publicity.

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

This article doesn’t include funding recommendation or suggestions. Every funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.