A Quiet Yet Positive Landscape
Despite seeming tranquility in the crypto and traditional markets due to reduced liquidity, Pal highlights that the cryptocurrency domain has seen a substantial growth of 50-100 percent this year. The broader sentiment, however, feels less enthusiastic because of the market’s stagnant performance since April.
Will the Banks Play a Role?
Current market conditions are influenced by central banks’ monetary policies. With signs of a slowing economy, rising unemployment, and declining inflation, there is anticipation of changes in these policies. Pal predicts that central banks might halt rate increases, pause quantitative tightening, and even consider rate cuts as 2024 approaches. This changing stance on liquidity could shift the financial momentum in the coming year.
Why is Solana a Favorite?
Pal also commented on Solana’s significant integration with Visa’s pilot for blockchain transactions. He credited Solana’s success to its speedy transaction capabilities and its distinctiveness from Ethereum.
Additionally, Solana’s collaborative and inclusive ecosystem, led by influential figures like Tolly, fosters a dynamic environment for developers and users alike. This synergy has enabled Solana to consistently deliver exceptional performance, especially in a volatile and rapidly evolving space.
Solana (SOL) Price Analysis
As of the time of writing, the Solana price stands at $19.23 and is in the red on the weekly chart. Solana has had a wild price ride in 2023, reaching its highest yearly price of $32.13 in July before dropping. This week, it went as low as $18, a key price level that has often acted as a safety net this year, except for a short time in June.
Looking at the weekly trends, there are signs that the price might continue to drop, as the Relative Strength Index (RSI) is also going down. However, if we zoom into the daily chart, things look a bit brighter. SOL’s price has once again risen from a rising support line for the third time this year.