Solana (SOL) Price Prediction: Below $200 & Undergoing Changes. Time To Invest in SOL?

Solana (SOL) is undergoing significant changes to enhance its network integrity and market position. The Solana Foundation's recent actions to improve network fairness, combined with Solana's current market trends, raise critical questions about its investment potential. This article delves into the strategic steps taken by the Solana Foundation, analyzes Solana's market performance, and explores whether now is the right time to invest in SOL.

Solana (SOL) Foundation’s Enhancement Actions

The Solana Foundation is taking decisive steps to enhance the network's fairness and integrity by targeting Maximum Extractable Value (MEV) issues. Recently, the Foundation unstacked validators found to be sharing mempool (memory pool) transactions, a move that surprised many. This action aims to curb MEV-related activities like sandwich attacks, where malicious actors manipulate transaction orders to exploit price changes.

Validators involved in the Solana Foundation Delegation Program were removed due to these practices, and further enforcement actions are pending. MEV is a critical issue in blockchain networks as it allows validators to maximize profits through transaction manipulation. By addressing this, the Solana Foundation seeks to bolster network security and ensure fair transaction processing, thus making Solana a more reliable platform for investors and users.

Solana (SOL) Price Prediction

1- Solana (SOL) Price Market Trend Analysis

Solana (SOL) is currently priced at $159, reflecting a minor 0.07% decrease over the past 24 hours and a 3.66% drop over the past week. Despite these short-term fluctuations, Solana has shown a positive trend over the past month with a 3.30% increase. With a market capitalization of $73.39 billion, Solana holds the fifth position among all cryptocurrencies.

Trading volumes remain robust, hitting $1.37 billion in the last 24 hours. However, Solana's value is significantly below its all-time high of $260.06, reached in November 2021, indicating a 38.52% decline from its peak.

2- Solana (SOL) Technical Analysis

Solana's technical indicators present a mixed outlook. Short-term moving averages, both Exponential Moving Averages (EMA) and Simple Moving Averages (SMA), signal a bearish trend with values around 164.12, 164.61, and 163.52. In contrast, long-term indicators, including the 50-day and 100-day EMAs and SMAs, suggest a bullish trend, indicating potential for long-term growth.

The Relative Strength Index (RSI) stands at 45.92, indicating a neutral market with no immediate signs of being overbought or oversold. Other oscillators also hover near the neutral zone, supporting this view. The Commodity Channel Index (CCI) at -125.53 hints at a buying opportunity, while the MACD level at 0.50 suggests a sell.

Fibonacci pivot points identify key support and resistance levels, with immediate support at 157.70 and resistance at 196.71. Breaking the resistance at 196.71 could push Solana towards higher resistance levels at 227.92 and 298.14, signaling a potential bullish breakout.

Is It Time to Buy Solana?

The decision to buy Solana (SOL) hinges on your investment strategy and risk tolerance. Short-term indicators suggest caution due to bearish trends and neutral oscillators. However, long-term indicators and crucial support levels indicate potential for future growth, suggesting that current prices could be a buying opportunity for long-term investors.

For those confident in Solana's long-term prospects and its ability to surpass previous peaks, now might be an opportune moment to invest. Conversely, short-term traders should wait for clearer buy signals before entering the market. It's essential to stay informed and analyze both technical indicators and broader market trends when considering investment in Solana.

The only one to make the final decision, whether to invest in SOL or not, would be the user, based on his risk appetite mainly, and some other personal factors. However, on major whale activity top news, it has been reported that more than 2M SOL, approximately worth more than $325M, were transferred between 2 unknown wallets. Should this news be a good or bad signal?