Solana coin banner. SOL coin cryptocurrency concept banner background.
Solana has remained in a consolidation mode in the past few days as demand for the coin has dried up. SOL is trading at $49.50, which is a few points below last week’s high of $60. The price is about 81% below its all-time high. Other large cryptocurrencies like Avalanche, Ethereum, and even Bitcoin have had a similar price action.
Solana is one of the leading blockchain projects that aims to become a leading player in web3 and the other parts of the decentralized industry. It is a project known for its significant speed and the fact that it uses a proof-of-stake technology. Solana processes about 2,100 transactions per second while the overall cost is $0.00025. It achieves this through its large network of validator nodes.
Solana’s ecosystem has been in a strong upward trend. According to its website, Solana is widely used by some of the best-known web3 projects like Hoglympics, Chainers, StepN, Serum, and Brave Browser. Solana has also been used to build Solana Pay, a payment platform that enables merchants to receive payments. It also integrates concepts of borrowing into the network.
On the daily chart, the SOL price has been in a strong bearish trend in the past few days. Along the way, the coin moved below the important support level at $76.27. This was a notable price since it was the lowest level on February 20th. In addition, the Relative Strength Index has moved slightly above the oversold level.
At the same time, the coin has formed what looks like a bearish pennant pattern. It has also dropped below the 23.6% Fibonacci retracement level. Also, it is below the support level of the Andrews Pitchfork tool. Therefore, the coin will likely keep falling as bears target the key support level at $35. On the flip side, a move above last week’s high at $58 will invalidate the bearish view.
This post was last modified on May 24, 2022, 08:37 BST 08:37