I queried ChatGPT to understand how Solana will perform in Q4 2023

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.

Solana [SOL] is likely one of the hottest cryptocurrencies on this planet. Its community has additionally made headlines previously for frequent outages. In Might, we printed a report that outages on the Solana community appeared to have diminished.

Lately, Solana’s developer Jacob Creech introduced a $400,000 bounty for anybody who can uncover the code that might flip Solana off.

Fyi there’s a $400k reward for anybody that may discover code that may flip off Solana

Please go forward and discover ithttps://t.co/2oxcB0EEyx

— Jacob Creech (@jacobvcreech) October 12, 2023

In different information, Solana suffered a 7% drop in its worth during the last seven days, falling to $22.

Learn Solana’s [SOL] Value Prediction 2023-24

Its value rose practically 30% following the information of Ripple [XRP] securing a partial victory in its authorized battle with the U.S. Securities and Alternate Fee (SEC) on 13 July. Nevertheless it couldn’t preserve its value rally for lengthy.

The U.S. District Court docket of the Southern District of New York dominated in its judgement that the sale of Ripple’s XRP tokens on crypto exchanges and although programmatic gross sales didn’t represent funding contracts; therefore, it’s not a safety on this case. However the courtroom additionally dominated that the institutional sale of the XRP tokens violated federal securities legal guidelines.

The crypto trade lapped up the judgement immediately, producing a value rally throughout tokens. However the cash couldn’t maintain the worth rally.

Solana’s repute as an “Ethereum killer”

Whilst SOL is touted to be the “Ethereum [ETH] killer,” Solana Labs co-founder Anatoly Yakovenko appears to be in settlement with the concept of utilizing Ethereum as a layer-2 for the Solana blockchain.

Wouldn’t it be potential for ethereum to be a @solana L2? In all probability extra possible than you would possibly assume at first look. L2s are bridge protocols that present a technique safety. On this setup, holders of solana belongings on ethereum would have finality ensures that they’ll exit again… https://t.co/XE5ETsxGIW

— toly 🇺🇸 (@aeyakovenko) July 2, 2023

Even Ethereum founder Vitalik Buterin is an admirer of the Solana protocol. When the SEC sued Binance [BNB] and Coinbase [COIN] in early June, it labeled a number of altcoins, together with SOL, as securities. Buterin rued the style wherein the regulator is focusing on initiatives like Solana.

The one remark I’ll make is that I really feel dangerous that @solana and different initiatives are getting hit on this method. They don’t deserve it, and if ethereum finally ends up “successful” via all different blockchains getting kicked off exchanges, that’s not an honorable method to win, and in the long run…

— vitalik.eth (@VitalikButerin) June 30, 2023

Heading into 2023, SOL was hovering across the $10 help zone. It was already within the grips of a downtrend that stretched again to November 2021, again when SOL was buying and selling at $200.

Simply as traders started anticipating additional losses throughout the crypto-market in January, Bitcoin [BTC] climbed previous $17k and shifted the shorter-term sentiment to bullish.

Solana benefited massively from this shift and recorded positive factors of 175% in 21 days. Nevertheless, it couldn’t breach the $26-$28 resistance zone, which has acted as help since June-November 2022.

We requested ChatGPT for its tackle the worth, community well being, and the trajectory of Solana after giving it some related knowledge factors.

Can we coax ChatGPT right into a Solana value prediction?

ChatGPT has been a outstanding chatbot, and the updates of the previous month have made ChatGPT 4.0 fairly spectacular. It’s a highly effective device for studying and well-trained on an unlimited array of subjects. But, we should do not forget that the bot is engineered to imitate a human, and isn’t essentially assured to be factually correct.

The jailbreak model of ChatGPT would possible be much more inaccurate, as it’s particularly instructed to not say no to something the consumer requests.

And but, it’s potential to acquire some guesses from the chatbot on what the long run would possibly maintain if we offer it with particulars about current value actions.

So, what does ChatGPT make of Solana? Does it see a path to restoration after its current setbacks? Based mostly on transaction charges and transaction speeds, ChatGPT appears to assume Solana will likely be an Ethereum killer.

We’re but to tell it of the challenges that Solana and SOL traders have confronted in current months. Let’s begin with the largest dent in investor confidence –

FTX, the place the free-fall started

Sam Bankman-Fried “SBF” was probably the most vocal proponents of the Solana community. The group noticed him as a reputable and good entrepreneur who was the CEO of one of many largest crypto exchanges, FTX.

Despite the fact that Binance reigned supreme when it comes to quantity and token pairs, FTX was giving it a run for its cash. Competitors can also be good for the trade and serves the purchasers.

Rather a lot has modified since then as there’s a trial occurring towards SBF. It has been alleged he commingled FTX buyer funds with these of Alameda Analysis to make undisclosed enterprise investments. He may face years in jail if convicted on all counts.

Not solely did the repute of Solana take successful, however the basis additionally bought a major quantity of SOL to FTX Buying and selling and Alameda Analysis. This amounted to 58.08 million SOL, or 11% of the circulating provide on the time FTX filed for chapter. It was valued at near $1.1 billion on the time.

As anticipated, the worth of Solana nosedived in November and declined by 45% from November 11 to 31 December, falling from $18.08 to $8. With rumors of FTX’s insolvency circulating from November 5, SOL had already misplaced 50% the earlier week, when it was buying and selling close to the $38 mark.

This took SOL’s complete losses from 5 November 2022 to 31 December 2022 to 79.4%.

Supply: ChatGPT

ChatGPT actually sounds optimistic, and early 2023 went terribly effectively for traders. And but, some community points cropped up, simply as they’d in 2022.

SOL exceeded expectations in January and February 2023

From 1 January to twenty February, Solana gained 179.88% on the worth charts and rallied from $9.69 to $27.12. The explosive rally has been credited partially to Bonk; a meme coin launched inside the Solana ecosystem modeled after Shiba Inu.

Part of the overall 99 trillion provide was airdropped into the wallets of Solana customers in December. The transaction count per day was on a downtrend within the second half of December, however this circled in early January.

Quickly sufficient, the transactions had been selecting up tempo as soon as extra. The introduction of the enjoyable memecoin did a lot to convey the group away from the darkish, miserable shadow the FTX debacle had forged on Solana.

When fed with on-chain knowledge and value motion in current months, the jailbroken model of ChatGPT predicted a wild trip for Solana in This fall. It says SOL will hit $400 in December 2023.

Supply: ChatGPT

The community has confronted troublesome outages in current months, which could damage investor confidence. The chatbot agreed.

Supply: ChatGPT

Predictions apart, what does value evaluation inform us about Solana?

A take a look at Solana’s on-chart metrics

Supply: SOL/USD, TradingView

At press time, SOL was buying and selling at $22 as its value fell 9% during the last seven days. SOL’s Relative Power Index (RSI) and Cash Circulation Index (MFI) rested above the impartial 50-level. In conclusion, SOL’s on-chart metrics indicated that the worth pattern goes to be bullish.

Is your portfolio inexperienced? Take a look at the SOL Revenue Calculator

However ChatGPT predicts a wild trip for Solana this quarter. Merchants are nonetheless suggested to do their very own analysis earlier than investing in a crypto asset.