Solana has claimed its fame in the decentralized application development zone with a furious takedown of the monopoly captured by ETH blockchain and its supporting cryptocurrency. Furthermore, not being bottlenecked by scalability issues, SOL has undertaken the consensus of Proof of history combined with Proof of stake to merge the best of both worlds.
Driven by innovation and modern thoughts at taking down the complexities of cryptocurrency applications, Solana has emerged as a winner claiming the 6th position in market capitalization. SOL cryptocurrency currently weighs in at $50 billion at its considerably lower valuation of $168. Comparing this with its recent September 2021 high of $219, the market capitalization has risen by USD 65 billion.
It will be unwise to undermine the capacity of Cardano and Solana to dominate the crypto market, taking the majority stake from ETH if it fails to bring new protocols to action. The rumored transition of ETH from Proof of Work to Proof of stake has already been delayed. It will not take long for SOL to fill the gap with modern scalability solutions.
Solana Price Analysis
Solana is back on track towards reclaiming its recent high of $216. After three weeks of consistent profit booking scenarios, the Solana price trend has finally shifted in favor of buyers, who will be taking huge benefits from the September 21 low. This two-week consolidated rally has resulted in a gain of above 45%.
Solana cryptocurrency has delivered outstanding returns from the May 2021 lows of $18 towards a fresh all-time high of $219 before falling to profit booking. Under the scaling solutions packed with new fuel Solana has jumped from $20 in August 2021 to over $200 in September 2021, marking a 1000% gain in close to a month. Considering similar fashion returns seen in ETH and other cryptocurrencies in the first half of 2021, it wouldn’t be a surprise if SOL takes on ADA by the end of 2021.
Solana has strong support at $120, followed by swing support at $70. These supports are relatively fresh and haven’t been tested multiple times. For example, only $120 was recently tested on 21st September 2021. Furthermore, we have seen a major jump from this level marking a fresh monthly high in October 2021. It indicates the shifting in sentiment over the last two months.
On the contrary to upside movement, SOL has strong resistance at $170 and $195 on a closing basis. In fact, one should consider Solana as a positive bias cryptocurrency only after it crosses the $170 mark and holds above the level without retracement. RSI has also moved up from 45 towards 67 and currently shows signs of consolidation before starting a fresh uptrend spree.
The MACD indicator has already published a new golden crossover on 2nd October. Considering the price action, SOL is most likely meant to fail in terms of taking advantage of this crossover indication. But since SOL has a total circulating supply of 297 million, which is all under circulation, this cryptocurrency will become a viable digital asset carrying much more value than ETH could achieve over its considerably longer life span.