The average price in 2023 is expected to be around 70-80 USD. The best strategy is to sell when the price is higher than 80 USD and sell if the price falls below 55 USD.
Solana - Day Trading Strategy
04 Oct, 2022
A cryptocurrency called Solana was created to function similarly to ETH, and to enhance it. Anatoly Yakovenko, a software engineer, came up with the name Solana, which is taken from a small seaside community in southern California.
The novel blockchain was first created by Yakovenko in 2017, and Solana was introduced in the first quarter of 2020. It has gained rapid popularity and is currently among the top 10 virtual currencies in terms of market valuation.
While it may seem complicated at first glance, once you get the hang of using it, this stock trading strategy can become quite simple and easy to implement on your own without paying for any additional software or hiring an expert.
In this guide, we’ll walk you through understanding the Solana day trading strategy algorithm so that you can make educated investments:
Solana Trading Strategy For Beginners
The Solana trading strategy in 2022 focuses on identifying the price channel in which stocks tend to trade most of the time and then using that price channel to determine the entry and exit points at which you should enter and exit swaps in your own portfolio.
It’s an advanced strategy, but with some practice, it can be used to help even a beginner earn consistent returns. Let’s take a look at how it works, starting with the concept of price channels themselves.
The Solana trading strategy for day traders has been successful in the last year, generating more than one million dollars in profit. It's based on arbitrage and momentum trading: which are two of the most used strategies.
In other words, it tries to take advantage of price discrepancies between crypto exchanges by buying low and selling high. However, many cryptocurrencies are in circulation now, so this strategy will not work for all of them.
Nevertheless, it has shown good performance when applied to Bitcoin and Ethereum, among others.
Solana Trading Strategy in 2023
Solana's decentralised blockchain was created to support globally usable, scalable apps. With thousands of projects spanning DeFi, NFTs, Web3 and more, it is both the quickest blockchain in the world and the crypto ecosystem with the fastest rate of growth.
In 2022, as it works to improve its reputation, Solana might reach a new record high of $346.21.
So far, the Solana network has only managed to match some of its competitors' transaction speeds and success rates, not yet get ahead of them. Solana's transactions have often had success rates that have remained above 80%. This is in light of the network load at Solana.
If Solana is successful in navigating the crypto-difficulties it faces while resolving the consensus problems. SOL's cost could increase to as much as 101 USD.
On the other hand, if it continues to be more susceptible to inflation and other calamities, the price may end up at 52.64 USD. Subsequently, a balance between the forces of buyers and sellers could determine the price; thus, making the average price 74.5 USD.
Calculate How Many Solana You’ll Need
The current price for the Solana token is 33.69 USD (4 of October 22). We will be using a trading strategy where we sell when the price is greater than $33.69 and buy when it is less than or equal to $33.69. To execute this trade, use a crypto exchange platform such as Exolix.
Solana is currently down by 2.3%, which means that if you have already invested, it’s best to wait to see whether the downward trend continues or the price goes up. Then, you should move accordingly.
Buy During a Retracement
Price declines occur in markets for a variety of reasons. For instance, the market could be in decline or the populace could be descending into fear. The Solana trading strategy algorithm is a momentum-based trading model that turns the traditional concept of what it means to buy low and sell high on its head.
By using this strategy, you are attempting to profit from the downward correction in an upward-trending market. When an asset experiences a retracement, it can signal that buyers may be coming back into the market.
If this happens, it may be time to start buying and selling your assets during these periods of retracement for quick profits.
There are always price drops. The price never moves in a straight line, no matter which currency or market you are investing in. The recent drop in Solana's price is the perfect example, as it went down by almost half of the current value.
You'll have the chance to make a sizable profit if you buy during a pullback and the price later rises. For instance, if you had purchased Solana at 10 USD, you would have profited at least 100% when the price increased to 20 USD.
Monitor Rankings and Solana Market Capitalization
The Solana trading strategy crypto can be summarized as follows: buy Solanas when their value is low, and convert them back to USD when their value is high. The current market capitalization of the Solana (SOL) token is approximately 11.8 billion USD. The current price of a single token is 32.7 USD.
With a specific cryptocurrency, you might only utilize the tactic a few times at most. You could wish to modify it after that since any cryptocurrency could enter into the top 10 list. You may, for instance, change to AVAX.
It's best to search for a cryptocurrency that drops in value by almost half before rising completely. However, this is not applicable for more well-established cryptos like BTC and ETH as they don't adhere to a regressive pattern due to their enormous market capitalization.
Only once has BTC fallen close to 50% when the CEO of Tesla made some remarks back in 2021 on Twitter. Similarly, ETH once experienced a 40% loss in value. Therefore, methods used for trading Solana may not be applicable to Ethereum.
However, experts do not anticipate seeing significant price drops very frequently. This is due to the substantial market capitalization of both of these cryptocurrencies; many people are making investments in them at all times.
Cryptocurrencies with smaller market values, however, will vary more frequently. In some cases, you should avoid them. Cardano's value has significantly decreased. In light of this, it would be unwise to invest in Cardano in the near future.
Frequently Asked Questions
Future predictions made by experts for the coin are highly optimistic, which means that the coin could potentially offer substantial returns to investors.