Solana jumps more than 40% in a week: What’s next for SOL?

Solana is a decentralized, open-source blockchain platform that was developed to support the scalability and performance required for decentralized applications (dApps). It was created in 2017 by former Coinbase engineer Anatoly Yakovenko and is headquartered in San Francisco, California.

One of the main features of Solana is its ability to process a high volume of transactions per second using the unique consensus algorithm called Proof of History (PoH). It allows the Solana network to reach consensus without energy-intensive mining. It makes Solana a more environmentally friendly and sustainable alternative to other blockchains that rely on mining.

In addition to its high TPS, Solana also offers low transaction fees, making it an attractive option for developers and users of dApps. The network also has a decentralized governance system, which allows stakeholders to vote on proposed changes to the protocol.

Solana has a growing ecosystem of dApps, including DeFi applications, NFT marketplaces, and gaming platforms. However, Solana has gained traction in the market and has a strong community of developers and users.

Overall, Solana is a promising blockchain platform that offers a unique combination of high TPS, low fees, and decentralized governance. Solana reached a peak value of $258 in November 2021, but just a year later, a combination of crypto woes and the FTX fiasco created further decline for SOL. Investors assumed a close relationship between FTX and SOL, which was the reason for the sudden downfall from $38 to $8. 

Solana prices are gradually improving, but there are certain hidden factors that involve a new race of meme tokens BONK. Launched on December 25, a 50% supply of this token was airdropped to existing Solana developers, holders, collectors, and traders. The sudden buying rally created as a result has brought huge gains for BONK. Will the rally continue? Click here to know!

SOL PRICE CHART

Fundamentally Solana projected itself as a strong cryptocurrency network, but the crypto winter has severely impacted its data flow. Technical indicators of Solana were on a massive decline for the last two months as the $260 trading token tested single-digit value.

There has been a massive turnaround in the dynamics of this token demand since the airdrop of the BONK token, a meme cryptocurrency. Currently, the BONK/SOL liquidity pair is showcasing a huge APR, which has created a huge rally in both tokens. While Solana is up by close to 40%, BONK has made it to the top of 3000. 

As this artificial boost has brought back attention to Solana, the existence of BONK on second-tier exchanges has created a huge demand with its $92,831,603 market capitalization. As BONK has already spiked decently, there could be a profit booking at any time, but at the same time, moving to $1 billion could result in a huge return on investment. 

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On technical analysis of SOL price action, the recent jump in buying rallies is artificial and not driven by need. Hence, once enough value is reached, SOL could witness a huge profit booking. But since this rally shouldn’t be ignored, traders should refrain from investing heavily in Solana. More stable tokens could help stabilize the individual portfolios in the short term.

As previous support of $12.8 has once again been revived, breaching $18 becomes essential for marking a substantial rally in this token. Even its 100 EMA curve is trading close to the resistance levels, and hence a positive breakout could be confirmed if the price action ticks all these expectations.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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