The Solana price is relatively unchanged even after the positive news published on Wednesday. SOL is trading at $41.30, which was slightly below this month’s high of $44.23. It has a market cap of more than $11.50 billion, making it the 13th biggest crypto project in the world. It sits between Bitcoin Cash ($11.5 billion) and Litecoin ($11.2 billion.
What happened: In one of the biggest capital raises in cryptocurrencies, Solana Labs, the developers of SOL said that they had raised $314 million from a group of investors led by Andreessen Horowitz. The funding happened by the venture firms buying SOL digital tokens, meaning that they will only make money when SOL prices rise.
For starters, Solana is a blockchain technology that allows people to build projects like games and Decentralized Finance projects. Some of the biggest projects built on Solana are Serum and Chainlink. Analysts believe that Solana’s architecture is better placed to provide a more scalable platform for DeFi projects.
For example, Ethereum handles about 13 transactions per second while Solana processes about 50,000 transactions per second. As development goes on, it will make it more competitive to Visa, which processes 65,000 transactions per second. So, what next for SOL price?
On the daily chart, we see that the SOL price has risen by more than 115% from its lowest level in May. The coin has managed to move above the 25-day and 50-day moving averages (MA). Bulls seem to be attempting to move to the highest point this year at $58.3. It also seems to be forming a head and shoulders pattern, which is usually a bearish sign. Therefore, the outlook for Solana is neutral with a bearish bias. The key support and resistance levels to watch are $33 and $50.
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