Solana is a decentralized platform aiming to achieve high transaction speed. It works as proof of the history mechanism. The native token SOL is used to pay gas fees and staking. In 2021, the price spike almost doubled, which drew the attention of many investors.
Solana is a cryptocurrency that offers a flexible platform for running decentralized apps. The innovative high-speed technology makes it one of the popular cryptocurrencies in the market. It can process around 50K transactions per second which is far better than Bitcoin and Ethereum.
Developers think the low fees and high-speed scale the growth of this platform. SOL got a significant boost in price with the launch of the NFT collectible project, which is the first major NFT project based on the Solana blockchain.
Blockchains allow transferring money without intermediaries, but the only drawback is that the technology is slow. Solana comes with a solution that makes the technology fast and scalable.
Solana works with smart contracts, which can be used in several applications like NFT, DeFi, decentralized lotteries. It also supports wrapped assets and stable coins.
Solana has a variety of use cases. Let’s analyze the price of SOL/USD.
While writing the SOL price analysis, the coin price is at $106. The coin broke the support level of $133, but it is still getting support at the $100 level.
On the daily chart, the MACD is bullish, and the RSI is also strong at 41. Besides that, the candlesticks will cross the baseline of Bollinger Band, which is also a bullish signal.
However, is it the right time to invest in Solana for the long term? Here is the twist- on the chart, the next support level should be around $70, but it is getting a bullish momentum early, so it may not be a stable bullishness where you can invest and forget the investment for at least two years.
Traders should utilize the time to do some more research on the use cases of this platform. Indeed, we think Solana is the future of the crypto market, and the price will rise in the long run. Moreover, if you want to invest in this coin for the long term, explore our SOL price prediction to know the possible price levels of Solana coin in the upcoming years.
For short-term investors, the target price can be $125 with a stop loss of $84. However, we think it can be a risky trade, so put the amount you can afford to lose.
If you are interested in SOL token, then you should wait for a perfect opportunity to buy this for the long term. We think around $50 could be a better price to buy which is also far lower than the ATH.