According to an analysis by FXOpen on Tradingview, Solana (SOL) has been one of the best-performing cryptocurrencies in 2023, with its price increasing over 1000% year-to-date.
This remarkable rally has propelled Solana to become the fourth largest cryptocurrency by market capitalization, trailing only Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
Solana’s success can be attributed to its blockchain’s unique technical architecture, which allows it to reach speeds of up to 50,000 transactions per second. This level of scalability is unmatched by other major blockchains today.
Solana has also seen surging adoption in 2023. Several major investment funds, such as Grayscale and CoinShares, added SOL to their portfolios, bringing more credibility and exposure to the project. The SOL token can be used to pay for transactions and services on Solana, similar to how ETH is used on Ethereum.
In December 2023, SOL’s price went past the key $100 level for the first time since April 2022. SOL even reached a high of $110, confirming this price area as having strong support. The all-time high for SOL still stands at over $250, which was achieved in late 2021, so there is plenty of upside potential still.
Near-Term Caution Advised
The 4-hour SOL/USD chart on FXOpen’s TickTrader platform is showing some signs of bearish divergence after the sharp rejection off the upper channel limit. The price may revisit the $100 area in the near term to confirm its support.
Investors should closely monitor the median line of the ascending channel, which could provide support around $90. RSI is also displaying some negative momentum, so a brief pullback would not be surprising.
Overall, Solana remains in a clear long-term uptrend, with its sights set on surpassing the market caps of bigger cryptos. If adoption continues to grow at the current pace, SOL joining the top 3 in the future is a distinct possibility. Patience and prudent position sizing are advised in the near term, but Solana seems poised for more massive growth in 2023.
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