Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Even as Solana [SOL] is touted as the “Ethereum [ETH] killer,” Solana Labs co-founder Anatoly Yakovenko seems to agree with the idea of using Ethereum as a layer-2 for the Solana blockchain.
Would it be possible for ethereum to become 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 step back… https://t.co/XE5ETsxGIW
— toly 🇺🇸 (@aeyaovenko) July 2, 2023
Even Ethereum founder Vitalik Buterin is an admirer of the Solana protocol. When the US Securities & Exchange Commission (SEC) filed lawsuits against Binance [BNB] and Coinbase [COIN] in early June, it labeled several altcoins, including SOL, as securities. Recently, even Buterin has criticized the regulator’s targeting of projects like Solana.
The only comment I will make is that I feel bad about that @solana and other projects are affected in this way. They don’t deserve it, and if ethereum ends up “winning” by all the other blockchains getting kicked off exchanges, that’s not an honorable way to win, and in the long run…
— vitalik.eth (@VitalikButerin) June 30, 2023
Heading into 2023, SOL hovered around the $10 support zone. It was already in the throes of a downtrend that stretched into November 2021, when SOL traded at $200. Just as investors began anticipating further losses in January on the crypto market, Bitcoin [BTC] climbed past $17k and short-term sentiment shifted to bullish.
Solana benefited greatly from this shift, posting a 175% gain in 21 days. However, it failed to breach the $26-$28 resistance zone, which has acted as support since June-November 2022.
Read Solana’s [SOL] Price Forecast 2023-24
Meanwhile, the on-chain analytics company Messari released a report analyzing the degree of decentralization between different chains. Proof-of-stake (PoS) network Solana, with an overall Nakamoto coefficient of 1.9, appeared to have outperformed its peers.
The most bullish scenario of 2023, according to AMBCrypto’s prediction bot, could see SOL valued at $75.5. However, we can ask another bot for its opinion on Solana’s price, network health, and trajectory after giving it some relevant data points.
Can we coax ChatGPT into a Solana price prediction if we give it enough information?
ChatGPT has been a remarkable chatbot and the updates over the past month have made ChatGPT 4.0 quite impressive. It is a powerful tool for learning, well trained in a wide range of subjects. Still, we must remember that the bot is designed to mimic a human and is not necessarily guaranteed to be factually accurate. The jailbroken version of ChatGPT would probably be even more inaccurate, as it’s specifically instructed not to say no to anything the user asks.
And yet it is possible to get some guesses from the chatbot about what the future might hold if we give it details of recent price movements.
So, what makes ChatGPT Solana? Does it see a path to recovery after the recent setbacks? Based on transaction fees and transaction speeds, ChatGPT seems to think Solana will be an Ethereum killer.
We have yet to brief it on 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 was one of the most outspoken supporters of the Solana Network. The community regarded him as a credible and savvy entrepreneur who was the CEO of one of the largest crypto exchanges, FTX. While Binance reigned supreme in terms of volume and token pairs, FTX gave it a run for its money. Competition is also good for the industry and serves the customers.
A lot has changed since then and the SEC has appointed Mr. Bankman-Fried accused of defrauding FTX’s equity investors, further alleging that he mixed FTX client funds with Alameda’s to make secret venture investments. He risks more than 100 years in prison if convicted on all counts.
Not only did Solana’s reputation take a hit, the foundation also sold a significant portion 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 nearly $1.1 billion at the time.
As expected, Solana’s price fell in November, falling 45% from Nov. 11 to Dec. 31, from $18.08 to $8. With rumors of FTX’s insolvency circulating from Nov. 5, SOL had already lost 50%, when it traded around $38. This brought SOL’s total losses from November 5, 2022 to December 31, 2022 to 79.4%.
ChatGPT certainly sounds optimistic, and early 2023 has been going extremely well for investors. And yet some network problems occurred, just like in 2022.
SOL rose 180% in January and February 2023, beating all expectations
From January 1 to February 20, Solana gained 179.88% on the price charts, rising from $9.69 to $27.12. This explosive rally has been partially credited to Bonk; a meme coin introduced to the Solana ecosystem modeled after Shiba Inu.
A portion of the total supply of 99 trillion was dropped into the wallets of Solana users in December. The number of transactions per day was in a downward trend in the second half of December, but this reversed in early January.
Is your wallet green? Check out the Solana Profit Calculator
Soon, transactions picked up momentum again. The introduction of the fun meme coin did a lot to move the community away from the dark, depressing shadow that the FTX debacle had cast on Solana.
Fueled by on-chain data and price action in recent months, the jailbroken version of ChatGPT fetched a $10K price for Solana in Q3 2023.
The network has suffered some troublesome outages in recent months and this could damage investor confidence. The chatbot agreed.
Aside from the predictions, what does price analysis tell us about Solana?
Some imbalances remain in the South
At the time of writing, SOL was trading at $19.5, showing a modest 3% increase within a week. The value is down nearly 20% since the SEC’s enforcement action against Coinbase and Binance.
Both the Relative Strength Index (RSI) and the Money Flow Index (MFI) remained well below the neutral 50 level. But the On Balance Volume (OBV) shows an upward movement.
As long as the indicators on the chart are concerned, we cannot predict a bright future for Solana in the short term.
Even if ChatGPT predicts that the price of SOL will rise to the ridiculously high $10,000 mark in the third quarter of this year, the stats on the chart paint a bleak picture. It is therefore critical that traders do their own research before investing in any crypto asset.
This post ChatGPT predicts that Solana will reach $10,000 in Q3 2023, but the price chart…
was published first on https://ambcrypto.com/chatgpt-solana-price-prediction-16/