Solana price has been trading within a rather tight range for close to two weeks now. It is currently ranked 7th in the crypto market; having been overtaken by Cardano.
Since the beginning of last week, ADA has surged by over 50%; placing its market capitalization at over $50.631 billion. In comparison, SOL is about 5% higher from where it began the past week with its market cap at $43.172 billion.
According to the Bank of America, blockchains like Solana may lessen Ethereum’s market share in the long run as it strives to heighten its developer interest and user adoption. Nonetheless, security concerns will remain a key headwind in the foreseeable future.
At the beginning of the year, the Solana network was subject to a distributed denial-of-service (DDoS) attack; causing it to go offline for four hours. In 2021, it went offline for an entire weekend. The security issues may have investors continue to favor Cradano and other altcoins like Binance Coin and Tether.
SOL has been on a downtrend for over two months now after it hit its all-time high of 260.21 in early November. Since then, it has dropped by about 47.13%.
Notably, it has been trading below the psychologically crucial level of 200.00 for about three weeks. For as long as Solana price remains below this level, the bearish outlook will hold. As at 0915 GMT, the altcoin was at 137.59.
In the near term, it will likely continue to find support at 132.50. If that happens, range-bound trading may be recorded in the ensuing sessions as the bulls lack enough momentum to break the resistance along the 25-day EMA at 156.26.
A decline past the range’s lower border will have the bulls defend the support at 120.00, which it last hit four months ago. On the flip side, it may rebound to the upper resistance level of 168.06, which is along the 50-day EMA.
This post was last modified on Jan 18, 2022, 10:34 GMT 10:34