The first thing that pops in your mind when thinking about Solana would be the huge price rise it made in 2021. This price action helped Solana jump several paces and find security in the top ten blockchains in terms of market capitalization. Solana is now worth more than $15 billion, with 72% of its SOL token already entering the circulating supply.
The greatest advantage of the Solana ecosystem is its very limited and lower transaction cost which is calculated to be 50000 to 60000 times cheaper than Ethereum transactions. SOL token is essential for completing the transactions as it is required to pay for gas fees.
Another reason behind Solana’s ability to complete faster transactions and accommodate larger transaction volumes is its well-designed combination of Proof of History along with Proof of Stake. These two protocols helped Solana achieve their scalability targets. Enabling smart contracts and supporting dApps and DeFi has already alleviated Solana from the list of possible Ethereum overtakers.
SOL has displayed a significant rally in the last week, sidelining the price halt on July 17. The current price action has brought SOL to a stronghold of $45 with a new target of $59 on the immediate scale. When will SOL reach the $59 price level? Read our SOL forecast to know!
Solana has witnessed a rising buying sentiment since the dip of June 2022. While the SOL token was making consistent dips, buyers were just getting trapped in the further downside movement. The price rise witnessed in mid-March 2022 is yet to be surpassed by the current bull run.
SOL will have to jump past the immediate resistance of $59 and put itself in a better position to take advantage of diminishing crypto winter scenarios. All thanks to the double-digit upside movement of July 18, Solana is now eyeing a larger target. Even the 50 EMA curve is turning flat in place of a downside, which confirms a bullish trend on technical moving averages.
Despite the dip of $28 being a low point for Solana, it requires a jump of 25% to mark a 100% rally from its June 2022 lows. As RSI jumped to 64, closing towards overbought zones can initiate a slight profit booking. As long as the prices remain above $43.5, Solana will easily be able to re-initiate its prior positive journey. 100 EMA curve for Solana trades at $54, which is slightly below the price action-based resistance. The 200 EMA curve is trading at a slight premium of $75.
Coming down to the negative signs and levels, one should be wary. Breaching $43.5 could erase all the gains made in recent weeks. Although there is a higher probability of consolidation even in the case of profit booking, the outlook for SOL is more on the positive side even with all the probability of negative movement.