Solana (SOL) started off the new year with a price level of less than $2 but with a staggering growth rate, the cryptocurrency climbed upwards to establish its all-time high of $39. Solana is ranked at 16th in terms of market capitalization. Currently, the cryptocurrency is under pullbacks. The price of the cryptocurrency has declined by 13% in the past 24 hours. At the time of press, Solana was trading hands $32.69 apiece.
Solana (SOL) Technical Analysis
Trader Slothie has identified a parabolic curve formed by the price action of Solana in her Solana technical analysis. The trader has also identified the four bases of the parabolic curve. By the third base – the triangle in red – the price doubles which was what happened in the case of Solana. Subsequently, after the final base, the price usually dips under market corrections.
As made clear by the price developments, Solana is in market corrections. The trader is suggesting a short position in the long term and do not expects the cryptocurrency to reverse is trajectory. However, this does not entail that Solana should be overlooked and the project still has good long-term potential – which is also supported by various other platforms. DigitalCoinPrice places Solana at a price level of $58 in 2022 while a price level of $140 is suggested to be achieved in five years’ time. Wallet Investor is predicting Solana to be above $100 by the end of the year.
Will Solana rise back up?
Given the innovative technology underlying the project and; hence, it’s potential it may be considered highly likely for Solana to break away from the bearish trend. Solana has also been gaining popularity with investors as around $44 million had been injected into the project in the past month. Moreover, the stablecoin Tether (USDT) had also launched on the Solana blockchain with Tether regarding Solana as “one of the fastest growing blockchains”.
What is Solana (SOL)?
Solana is also dubbed as the “Ethereum Killer” because of the similarities the project bears to Ethereum as well as the technological advancement it offers. Solana is designed to provide decentralized finance solutions and support the creation of decentralized apps. However, that is not all. Solana offers way better scalability as it employs a Proof of History (PoH) as well as a Proof of Stake (PoS) mechanism.