Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Solana has been trading at $94.10 at press time as the coin continues on its downward trajectory.
While the coin has been struggling in trading between its previous range of resistance and support, there are a lot of things happening for it on the backend.
Once notorious for its outages, Solana claimed in July to have not suffered any outages since February. In fact, Solana’s developer Jacob Creech recently announced a $400,000 bounty for anyone who could turn Solana off.
Fyi there's a $400k reward for anyone that can find code that can turn off Solana
Please go ahead and find ithttps://t.co/2oxcB0EEyx
— Jacob Creech (@jacobvcreech) October 12, 2023
Solana’s flagship memecoin, BONK, is also gaining the attention of enthusiasts who are keen to boost its adoption. BONK recently announced a “PooperScooper” function that helps users organize their assets more efficiently in their wallets.
Solana’s reputation as an “Ethereum killer”
Even as SOL is touted to be the “Ethereum [ETH] killer,” Solana Labs co-founder Anatoly Yakovenko seems to be in agreement with the idea of using Ethereum as a layer-2 for the Solana blockchain.
Would it be possible for ethereum to be a @solana L2? Probably more likely than you might think at first glance. L2s are bridge protocols that provide one way security. In this setup, holders of solana assets on ethereum would have finality guarantees that they can exit back… https://t.co/XE5ETsxGIW
— toly ?? (@aeyakovenko) July 2, 2023
Even Ethereum founder Vitalik Buterin is an admirer of the Solana protocol. When the SEC sued Binance [BNB] and Coinbase [COIN] in early June, it labeled several altcoins, including SOL, as securities.
Buterin rued how the regulator had targeted projects like Solana.
The one comment I'll make is that I feel bad that @solana and other projects are getting hit in this way. They don't deserve it, and if ethereum ends up "winning" through all other blockchains getting kicked off exchanges, that's not an honorable way to win, and in the long term…
— vitalik.eth (@VitalikButerin) June 30, 2023
Heading into 2023, SOL was hovering around the $10 support zone. It was already in the grips of a downtrend that stretched back to November 2021, back when SOL was trading at $200.
We asked ChatGPT for its take on the price, network health, and the trajectory of Solana after giving it some relevant data points.
What does ChatGPT have to say about Solana’s future?
ChatGPT has been a remarkable chatbot, and the updates of the past month have made ChatGPT 4.0 quite impressive. It is a powerful tool for learning and training on a vast array of topics.
Yet, we must remember that the bot is engineered to mimic a human, and is not necessarily guaranteed to be factually accurate.
The jailbreak version of ChatGPT would likely be even more inaccurate, as it is specifically instructed not to say no to anything the user requests.
And yet, it is possible to obtain some guesses from the chatbot on what the future might hold if we provide it with details about recent price movements.
So, what does ChatGPT make of Solana? Does it see a route to recovery after its recent setbacks? Based on transaction fees and transaction speeds, ChatGPT seems to think Solana will be an Ethereum killer.
Source: ChatGPT
We have yet to inform it of the challenges that Solana and SOL investors have faced in recent months. Let’s start with the biggest dent in investor confidence –
FTX—where the free fall began
Sam Bankman-Fried “SBF” was one of the most vocal proponents of the Solana network. The community saw him as a credible and smart entrepreneur who was the CEO of one of the largest crypto exchanges, FTX.
Even though Binance reigned supreme in terms of volume and token pairs, FTX was giving it a run for its money. Competition is also good for the industry and serves the customers.
A lot has changed since then, as there is a trial going on against SBF. It has been alleged he commingled FTX customer funds with those of Alameda Research to make undisclosed venture investments. He could face years in jail if convicted on all counts.
Not only did the reputation of Solana take a hit, but the foundation also sold a significant amount of SOL to FTX Trading and Alameda Research. This amounted to 58.08 million SOL, or 11% of the circulating supply at the time FTX filed for bankruptcy.
It was valued at close to $1.1 billion at the time.
As expected, the price of Solana nosedived in November and declined by 45% from the 11th of November to the 31st of December, falling from $18.08 to $8.
With rumors of FTX’s insolvency circulating from the 5th of November, SOL had already lost 50% the previous week, when it was trading near the $38 mark.
This took SOL’s total losses from the 5th of November 2022 to the 31st of December 2022 to 79.4%.
Source: ChatGPT
ChatGPT certainly sounds optimistic, and early 2023 went extraordinarily well for investors. And yet, some network issues cropped up, just as they had in 2022.
SOL exponential growth in January and February 2023
From the 1st of January to the 20th of February 2023, Solana gained by 179.88% on the price charts and rallied from $9.69 to $27.12.
The explosive rally has been credited partially to Bonk; a meme coin introduced within the Solana ecosystem modeled after Shiba Inu.
A part of the total 99 trillion supply was airdropped into the wallets of Solana users in December. The transaction count per day was on a downtrend in the second half of December, but this turned around in early January.
Soon enough, the transactions were picking up pace once more. The introduction of the fun meme coin did much to bring the community away from the dark, depressing shadow the FTX debacle had cast on Solana.
When fed with on-chain data and price action in recent months, the jailbroken version of ChatGPT predicted that SOL’s price would reach $800 by the end of Q4.
Source: ChatGPT
We also asked the chatbot about Solana’s outages in the past, which might hurt investor confidence.
Source: ChatGPT
Solana’s price action over the last 7 days
Source: SOL/USD, TradingView
Solana was trading at $94.10 at the time of writing, with a sharp 1.92% fall in its price over the past 7 days.
The other indicators also echoed this bearish sentiment, as the Awesome Oscillator was seen registering red bars above the 0-level, showing signs of a pullback on the cards.
Similarly, the Parabolic SAR and OBV reinforced the downward movement of the coin.
Is your portfolio green? Check out the SOL Profit Calculator
Conclusion
Solana has been on a downtrend in the last week of trading and while the coin has the potential to upturn this movement, as per charts its current price analysis predicts this momentum to continue further.
On the other hand, ChatGPT thinks very highly of the coin claiming it will reach a whopping $800 by the end of 2024, also calling it an “Ethereum-killer” with better scalability, higher transaction throughput, and lower transaction fees.
Traders use a lot of tools and techniques while making their investments and while ChatGPT is one of the tools used by several traders, it is always advisable to do your research before putting money on any coins or tokens in the crypto space.
