• The Solana cryptocurrency has seen a 77% drop from $39 to $8.62 in November and December of 2022, but has since seen a surprising comeback.
• Technical analysis suggests that a breakout past $25.58 could result in large gains.
• The red box highlighted a bearish order block on the 12-hour chart which was beaten on January 14, resulting in a surge higher and an inefficiency on the daily timeframe.
The cryptocurrency Solana has experienced a rollercoaster of a ride in the past few months. In November and December of 2022, the cryptocurrency suffered a drop of 77%, from its high of $39 to its low of $8.62. This was a major blow to the currency, and many investors were worried that Solana would not be able to recover from the steep losses.
However, in the past three weeks, Solana has seen a surprising comeback. A recent report highlighted how Solana suffered a drop in important metrics alongside the prices in Q4 2022, but that 2023 brought a shift, with daily active addresses up by 47%. Technical analysis also suggests that a breakout past the $25.58 mark could result in large gains for the cryptocurrency.
The 12-hour chart showed a bearish order block on the red box, which was finally beaten on January 14. This resulted in a surge higher, leaving an inefficiency on the daily timeframe. The 61.8% and 78.6% HTF resistance levels are at $28.7 and $33.14, respectively, and can be used as markers for when to buy and sell Solana.
Overall, despite the large losses suffered in Q4 2022, investors have faith in Solana and the potential for large gains. Technical analysis looks positive for the cryptocurrency, and with the current market structure remaining bullish, the future looks bright for Solana.