I asked ChatGPT about Solana, it predicted a rise of 200%

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

Solana [SOL] witnessed an enormous dip in its worth this week, because the broader crypto market suffered a setback. Its worth fell greater than 10% inside the final seven days.

SOL’s worth rose almost 30% following the information of Ripple [XRP] securing a partial victory in its authorized battle with the U.S. Securities and Trade Fee (SEC) on 13 July. However it couldn’t keep its worth rally.

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 has lapped up the judgement immediately, producing a worth rally throughout tokens.

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

Would it not be attainable for ethereum to be a @solana L2? Most likely extra doubtless than you may suppose at first look. L2s are bridge protocols that present a method safety. On this setup, holders of solana belongings on ethereum would have finality ensures that they will 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 way wherein the regulator is focusing on tasks like Solana.

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

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

Heading into 2023, SOL was hovering across the $10 assist 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 features of 175% in 21 days. Nonetheless, it couldn’t breach the $26-$28 resistance zone, which has acted as assist since June-November 2022.

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

We requested ChatGPT, the AI bot, 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 worth prediction if we give it sufficient data?

ChatGPT has been a exceptional 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 enormous 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 doubtless be much more inaccurate, as it’s particularly instructed to not say no to something the person requests.

And but, it’s attainable to acquire some guesses from the chatbot on what the longer term may maintain if we offer it with particulars about latest worth actions.

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

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

FTX, the place the free-fall started

Sam Bankman-Fried aka “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 shoppers.

Quite a bit has modified since then, and the SEC has charged Mr. Bankman-Fried with defrauding the fairness traders of FTX, additional alleging that he commingled FTX buyer funds with Alameda’s to make undisclosed enterprise investments. He faces over 100 years in jail if convicted on all counts.

Not solely has the fame of Solana taken a success, however the basis additionally bought a big 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 properly for traders. And but, some community points cropped up, simply as they’d in 2022.

SOL gained by 180% in January and February 2023, exceeding all expectations

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 whole 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 rotated in early January.

Is your portfolio inexperienced? Examine the Solana Revenue Calculator

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

When fed with on-chain knowledge and worth motion in latest months, the jailbroken model of ChatGPT predicted a worth soar of 200% for Solana in Q3 2023.

Supply: ChatGPT

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

Supply: OpenAI

Predictions apart, what does worth 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 $22.04. The cryptocurrency had misplaced greater than 10% of its worth inside per week.

Whereas SOL’s Relative Energy Index (RSI) rested above the impartial 50-level, its Cash Stream Index (MFI) rested beneath it. Its On Stability Quantity (OBV) additionally mirrored a downtick.

In conclusion, SOL’s on-chart metrics level in direction of bearish market sentiment.

Conclusion

Whereas ChatGPT predicts SOL’s worth to rise 200% this quarter, its on-chart metrics recommend a bearish worth motion. It’s due to this fact essential that merchants do their very own analysis earlier than investing in a crypto asset.