The first thing that comes to mind when you think of Solana would be the huge price rally it achieved in 2021. This price action has helped Solana take several steps and find safety in the ten first blockchains in terms of market capitalization. Solana is now worth over $15 billion, with 72% of its SOL token already entering circulating supply.
The biggest advantage of the Solana ecosystem is its very limited and lower transaction cost which is calculated to be 50,000 to 60,000 times cheaper than Ethereum transactions. The SOL token is essential for making transactions as it is needed to pay gas fees.
Another reason for Solana’s ability to transact faster and handle larger trading volumes is its well-designed combination of proof-of-history and proof-of-stake. These two protocols have helped Solana achieve its scalability goals. Enabling smart contracts and supporting dApps and DeFi has already removed Solana from Ethereum’s list of possible overshoots.
SOL posted a significant rally last week, brushing aside the July 17th price stop. The current price action has taken SOL to a low of $45 with a new target of $59 on the immediate scale. When will SOL reach the $59 price level? Read our GROUND forecast to know!
Solana has seen an increase in buying sentiment since the June 2022 drop. As the SOL token made steady declines, buyers were simply trapped in the new downward move. The price rise seen in mid-March 2022 has yet to be surpassed by the current bull run.
SOL will need to break above the immediate resistance of $59 and put itself in a better position to take advantage of the declining crypto winter scenarios. All thanks to the double-digit bullish move on July 18, Solana is now aiming for a larger target. Even the 50 EMA curve becomes flat instead of a decline, which confirms an uptrend on the technical moving averages.
Although the $28 drop is a low for Solana, it takes a 25% jump to mark a 100% rally from its June 2022 lows. Overbought areas can trigger slight profit booking. As long as prices remain above $43.5, Solana can easily relaunch its prior positive run. The 100 EMA curve for Solana is trading at $54, which is slightly below resistance based on the price action. The 200 EMA curve is trading at a slight premium of $75.
When it comes to negative signs and levels, beware. Breaking above $43.5 could wipe out all the gains made in recent weeks. Although there is a higher probability of consolidation even with profit taking, the outlook for SOL is quite positive even with all the probability of a negative move.