Solana has drawn the short end of the stick so far, in terms of price action and bullishness.
The cryptocurrency hit an all-time high of $260 in November 2021, after rallying from $0.5 in less than a year.
To put things into perspective, Solana was one of the star cryptocurrencies of 2021.
However, 2022 saw Solana drop straight down from this high to about $40 in November before the FTX/Alameda crash sent it to $9.
The question now is:
Is SOL about to make a stellar return and become the star cryptocurrency of 2024?
SOL has made an amazing comeback in 2023. Although after its initial gains in January, SOL has been trading sideways.
According to the chart above, SOL is even trading at a YTD price increase of 148% since January.
This means that while Solana's price direction has not been so visible this year, it is still one of the best-performing cryptocurrencies of 2023.
But how much higher can SOL go?
Make no mistake, Solana has its fair share of challenges.
Ever since hitting $32.31 in mid-July, SOL has been in a downward spiral.
At the same time, SOL is now testing support somewhere around $19.59.
As anyone can guess, this presents a few bearish outlooks for the cryptocurrency.
However, analyst, Crypto Banter made some very interesting observations about Solana's price action in a new YouTube video.
According to the analyst, despite SOL's disturbing near-term chance of bearishness, there might still be some hope of salvation.
According to the analyst, if Solana closes "decisively below" the $20 zone, the cryptocurrency stands a pretty significant risk of declining to $16, or even $11.
The analyst went ahead to mention that if the $19 – 20 zone breaks, there might be a way to salvage things.
Banter says that if weakness occurs around this point, it might be the best move to buy at $16. And if the downside momentum is more aggressive, a good place to target would be at $11.
Now that we know how low SOL can go if a dip happens, let's talk about how a rally might look.
First of all, the $20 zone is an interesting support that might not break so easily.
However, if it does break, a decline to $16 would be the most likely course of action as Crypto Banter mentioned.
However, when SOL does rise, you should know that the next major resistance is the $26 zone, based on recent trading ranges.
If SOL begins to rally, a good place to keep an eye out for is the $26 zone. And if an upside break happens at this point, Solana will finally be ready to tackle $32, as well as its pre-FTX high.
How likely is SOL to become the star cryptocurrency of the next bull run?
The answer might be simpler than you think.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.