21 Mar 2022
SOLANA
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What is Solana (SOL) and how does it work?
Solana is an open-source project that uses blockchain technology's permissionless nature to provide decentralized finance (DeFi) solutions. Crypto Solana is the fastest blockchain and growing ecosystem with thousands of projects spanning from DeFi, NFTs, to Web3 and more. The idea behind this blockchain solution was initially developed in 2017, however, Solana was officially launched by the Solana Foundation, with headquarters in Geneva, Switzerland; in late March 2020.
Solana's protocol has been designed to facilitate decentralized app development, with the aim to improve scalability by introducing a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain, making it a hybrid consensus Crypto blockchain. Because of this hybrid model, the Solana solution can help small-time traders as well as institutional traders. The main focus of the foundation is to make decentralized finance accessible on a larger scale.
Solana's protocol has been designed to facilitate decentralized app development, with the aim to improve scalability by introducing a proof-of-history (PoH) consensus combined with the underlying proof-of-stake (PoS) consensus of the blockchain, making it a hybrid consensus Crypto blockchain. Because of this hybrid model, the Solana solution can help small-time traders as well as institutional traders. The main focus of the foundation is to make decentralized finance accessible on a larger scale.
The main reason why Solana (SOL) is able to be one of the fastest and most innovative blockchains is because of its proof-of-history (PoH) consensus, which was developed by Anatoly Yakovenko. This concept allows for greater scalability of the protocol, which in turn boosts usability, making it a much more efficient blockchain than competitors like Ethereum. The Solana blockchain is known in the crypto space for the incredibly short processing times the blockchain offers, an issue that Bitcoin has had for several years now. The hybrid protocol allows for significantly decreased validation times for both transaction and smart contract execution, allowing for lightning-fast processing times.
The protocol was designed with the aim to help both small-time users and enterprise customers, with one of the main promises being that they will not unexpectedly increase fees and taxes; this specific design allows for low transaction costs while still guaranteeing scalability and fast processing.
Solana's rise in popularity and utility pushed the Solana coin to a number 7 rank in CoinMarketCap as of September 2021. This impressive bull run, where Sol gained over 700%, was fuelled by the launch of Degenerate Ape NFT, a popular Nft Solana launched on its NFT platform. Solana price has continued to grow, mainly due to the higher developer activity on the Solana ecosystem, greater institutional interest, growing DeFi ecosystem, and the rise of the NFTs and gaming vertical on Solana
The protocol was designed with the aim to help both small-time users and enterprise customers, with one of the main promises being that they will not unexpectedly increase fees and taxes; this specific design allows for low transaction costs while still guaranteeing scalability and fast processing.
Solana's rise in popularity and utility pushed the Solana coin to a number 7 rank in CoinMarketCap as of September 2021. This impressive bull run, where Sol gained over 700%, was fuelled by the launch of Degenerate Ape NFT, a popular Nft Solana launched on its NFT platform. Solana price has continued to grow, mainly due to the higher developer activity on the Solana ecosystem, greater institutional interest, growing DeFi ecosystem, and the rise of the NFTs and gaming vertical on Solana
Coin Analysis
Last update 21/3/2022
Solana initially launched on Binance in April 2020 at around $0.22, followed by a price increase to $0.86 in just the first week, a price level that it would never see again as it grew exponentially over the following months. Following that initial move, Solana's price would rise to over $50, or over 220x from launch price. This spike was followed by a few months of retracement in mid-2021, mainly due to the overall market retracing and Bitcoin price falling to previous support levels. Towards mid-2021 and the beginning of 2022, Solana USD saw its biggest price increase, rising again by an astonishing 740%, and reaching an all-time high of over $250. This was one of the most successful price increases of a coin during that period, making high profits for traders.
SOL/BUSD weekly candles chart
After reaching its ATH in late December 2021, Solana has retracted and has fallen below several support levels, first, around $200, then around $140, and finally below $100, where it currently stands. On high time frames we can see Solana to usd breach several key support levels, in particular as it lost the 20EMA level, in early January 2022, and consequently, when it lost the 50EMA towards the end of the same month. This is not a great sign as it signaled an end of the bull market and potentially a beginning of a bear one. For the outlook of the market to change Solana would have to regain the 50EMA with a push that would see its price testing the $110 price range, coinciding with the upper resistance level, just below the 20EMA. If prices manage to break above this level and consolidate, it's likely to see a change in trend.
Solana price prediction would suggest that after many months of falling prices, Sol might have bottomed out. With a current retracement of nearly 70% from ATH Solana is currently trying to push for higher levels, potentially around its next resistance level at $110. If prices manage to reach this resistance level, it would be extremely bullish for the coin and it could signal a continuation in trend in the following months. However, if the coin fails to hold the current level and breaks below the support level, it would be catastrophic and we could see prices drop as low as below $50.
Solana price prediction would suggest that after many months of falling prices, Sol might have bottomed out. With a current retracement of nearly 70% from ATH Solana is currently trying to push for higher levels, potentially around its next resistance level at $110. If prices manage to reach this resistance level, it would be extremely bullish for the coin and it could signal a continuation in trend in the following months. However, if the coin fails to hold the current level and breaks below the support level, it would be catastrophic and we could see prices drop as low as below $50.
SOL is available for trading on BmyBit.com dApp.
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Author: Matteo Poole
info@yanda.io
info@yanda.io
