Solana has emerged from the crisis in recent weeks and has recovered from the FTX bankruptcy. After the SOL price fell from $36 to $12 shortly after the bankruptcy, Solana found itself in the worst crisis of its existence. But in January, the price was able to rise sharply again. Why is Solana up? And most importantly, what is a conservative Solana price prediction for February 2023? Let’s analyze!
In this article, we want to take a look at the Solana forecast for February and see if the massive increase can continue in the coming weeks.
Brief Recap on What Solana is
Solana is focused primarily on scalability. It uses a modification of the proof-of-stake consensus mechanism called proof-of-history, which allows the network to process up to 50,000 transactions per second. The Solana blockchain’s greatest strength is its speed and scalability, making it an ideal platform for developers to build scalable applications. The network token for this blockchain is called SOL.
Is Solana up in the past weeks?
In the last few weeks, the Solana price has seen a sharp rise again. With the start of the year, the crypto market has seen strong gains. Solana was one of the cryptocurrencies that have risen the most over the past few weeks. At the turn of the year, the Solana course was still slightly below 10 dollars. However, the course was able to rise to over 25 dollars in January.
In the last few days, the price has stabilized at around $24. It is still well below the price before the FTX crash. Back then, the SOL token fell from a price above $36 to $12 within a few days.
Why Solana Surging?
The main reason for the Solana crash at the time was the connection with FTX and Alameda Research, with which founder Sam Bankman-Fried very likely cheated users out of their investments. This close interdependence triggered a loss of trust.
In the past few days, investors seem to be regaining confidence and seeing the benefits of the Solana blockchain. The Solana network offers a number of advantages over other blockchains. This includes:
- High scalability: Solana uses a protocol called “Proof of History” (PoH) which enables faster transactions than other platforms.
- Low Latency: Solana has very low latency, so transactions are confirmed faster.
- Cost-effective: Solana uses a delegated proof-of-stake consensus mechanism, which makes validating transactions less energy-consuming.
All of these advantages keep Solana so popular and investors are regaining confidence in the platform after several weeks without further scandals.
What is the Solana Prediction for February?
The rise in the Solana price was massive in the first few weeks of the year. The SOL token has gained more than 100% since the beginning of the year. The stabilization of the past few days was therefore logical as we are still in a long-term bear market. A precise direction of the market is difficult to discern.
It may be that the crypto market continues to move in a positive direction and that the SOL price can continue to rise sharply. In this case, the SOL increase should continue at a slower rate than in January. But there could also be a crash that drives the price back down.
Solana Prediction: SOL Targets for Feb 2023
The SOL price could either rise or fall again more sharply. Much depends on the development of the overall market, which is difficult to forecast at the moment. There are 2 scenarios for the Solana forecast:
- Scenario 1: Markets continue to rise. In that case, we can expect Solana’s late-February guidance to be in the $30-$38 range.
- Scenario 2: The market crashes sharply. In that case, Solana’s forecast for late February is $15-$20.
Both scenarios or a mixed form are currently possible. We are at a small turning point in the market.
Is Solana a Good Buy?
An investment in the SOL token is still an investment, which is associated with risk but can also bring in high returns. It should be up to you whether you want to take that risk. Especially in these weeks, it is difficult to say in which direction a Solana forecast is going.
Where to Buy Solana?
There are many exchanges that sell the SOL token. Taking into consideration the biggest, here’s a list that we at CryptoTicker recommend:
If you are trading CFDs, eToro is a good alternative to buying the actual tokens and trading the price differences instead of worrying about the safekeeping and security of cryptos.
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Source: https://cryptoticker.io/en/solana-price-prediction-for-february-2023/