I asked ChatGPT about Solana’s Q3, here’s what it said

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

Solana [SOL] has a bearish outlook for the subsequent week. The take a look at of the $20 help zone was anticipated to see demand flood the market, however that was not the case. Conversely, SOL bulls have been lukewarm of their enthusiasm in comparison with their bearish counterparts, a current AMBCrypto report says.

SOL’s worth fell almost 2.5% inside the final seven days.

Its worth rose almost 30% following the information of Ripple [XRP] securing a partial victory in its authorized battle with the U.S. Securities and Change Fee (SEC) on 13 July. But it surely 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.

Solana’s status 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 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 possible than you may assume at first look. L2s are bridge protocols that present a method safety. On this setup, holders of solana property 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 style during which 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 method. They don’t deserve it, and if ethereum finally ends up “successful” by way of all different blockchains getting kicked off exchanges, that’s not an honorable strategy 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 buyers 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. Nevertheless, it couldn’t breach the $26-$28 resistance zone, which has acted as help 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 information factors.

Can we coax ChatGPT right into a Solana worth prediction if we give it sufficient info?

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 instrument for studying and well-trained on an unlimited array of matters. But, we should keep in mind 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 attainable to acquire some guesses from the chatbot on what the longer term may maintain if we offer it with particulars about current worth actions.

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

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

FTX, the place the free-fall started

Sam Bankman-Fried aka “SBF” was some of the vocal proponents of the Solana community. The neighborhood noticed him as a reputable and sensible 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.

Loads has modified since then, and the SEC has charged Mr. Bankman-Fried with defrauding the fairness buyers 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 status of Solana taken a success, 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 definitely sounds optimistic, and early 2023 went terribly effectively for buyers. And but, some community points cropped up, simply as that they had 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 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 circled in early January.

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

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

When fed with on-chain information and worth motion in current months, the jailbroken model of ChatGPT predicted a worth vary of $350-$400 for Solana in Q3 2023.

Supply: ChatGPT

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

Supply: ChatGPT

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

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

Supply: SOL/USD, TradingView

At press time, SOL was buying and selling at $19.79. The cryptocurrency misplaced almost 2.5% of its worth inside every week.

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

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

Conclusion

Whereas ChatGPT predicts SOL’s worth to rise to the vary of $350-$400 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.