The Solana price pulled back after it rose to an all-time high yesterday. SOL is trading at $45.30, which is 6.72% below its all-time high of 48.39. Data compiled by CoinMarketCap show that Solana has a market cap of more than $12.1 billion and is the 14th biggest cryptocurrency.
What happened: Solana, a relatively new blockchain product, has been on a strong growth in the past few months. This year alone, the currency has surged by more than 2,400%, making it one of the best-performing digital currencies in the world. This month alone, it has gained by more than 135%.
This performance is mostly because of the fact that many developers see Solana as a viable alternative to Ethereum. While the latter is the biggest developer-focused coin in the world, users complain about its high gas prices and slow speed. Therefore, many developers have been moving to alternative platforms like Solana and Elrond.
Solana price also rose ahead of the launch of Star Atlas. This is a next-gen metaverse, which is a product that enables developer to create products that help people to play and learn. Recently, Solana added Solstarterm, the first Initial Dex Offering (IDO). It is also helping developers build DeFi products.
In summary, Solana has jumped because of the overall bullish nature of the cryptocurrency industry, lower gas prices, and strong adoption by developers.
In my last article on Solana, I predicted that the coin was defying gravity and possibly heading towards $50. That prediction was correct as Solana surged to $48 yesterday. It now seems to have found some resistance as some investors rush to take profit. This is not untypical. Indeed, in most cases, cryptocurrencies and other assets tend to retreat when they approach a key level of resistance.
The price has also formed an ascending channel that is shown in orange. This retreat is because Solana tested the upper side of the channel. Therefore, I expect it to continue to decline to the lower side of the channel at$43 and then rise to $50. This prediction will be invalidated if it moves below $43.
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