Blockchain is not just a word but a field of infinite possibilities. There is a wide scope on this blockchain network. With the exponential growth of decentralized finance, Solana has made its mark on the industry. Solana not only supports DeFi, but it also facilitates decentralized applications. As a result, it will have improved scalability.
Solana uses a unique verification technology called a hybrid model using both Proof of Stake and Proof of History protocols. These protocols enable Solana to reduce the verification time required to complete regular and smart contract transactions. With its ultra-fast processing speed, it has garnered huge interest from various institutions. To guarantee non-stop scalability, Solana strives to maintain low transaction costs with its lightning fast verification speed.
From 42nd rank in February 2021, Solana has broken into the top ten in just five months. Solana is currently ranked 8th with a market capitalization of USD 33 billion.
Solana Price Analysis
Solana is incomprehensible in terms of price action, and it is expected to trade even higher. However, despite the price, the actual market capitalization is relatively low compared to the growth prospects of Solana with major blockchain networks. Furthermore, Solana is proceeding strictly based on sentiment value, as it is seen as a potentially strong competitor to the scalability of Ethereum.
Solana should be considered as the most trending cryptocurrency according to its price action. The rise to new highs made the earlier April 2021 highs like a retracement where it remained confined to $56. From $1.54 on January 01, 2021 to $130 on August 31, Solana is up 8500% in just eight months. Not only is this an outstanding achievement for Solana, but it also highlights Solana’s scalability.
SOL/USD is up almost 265% in just one month, and this increase reached new highs in the last week, where it delivered a decisive breakout at $80. At the time, it was clear that Solana would reach a much higher level than expected. But the worrying fact is that the day profit-booking reached 19%, and later, it closed in the red. A high light at a new high indicates a small margin of profit booking. We need to look at the price action on the hourly chart to clarify the potential volatility.
Both MACD and RSI were in a bullish trend despite yesterday’s profit-booking. The RSI on the histogram is showing the 83 level. At the same time, MACD rejected the bearish crossover and moved up with a sustained gap between the two moving averages, indicating positive sentiment on both the smaller and larger time frames.
Solana enjoys strong support near the $90 – $95 level, which could help it bounce back in case of continued profit booking. However, one should book some profits and, according to us solana predictionWait for the next few days for better clarity on the possible results.
Solana has had a period of consolidation over the past few days, even on the hourly chart, which can be deduced as a narrow consolidation zone. Higher trading volume on 27 August helped Solana conquer consolidation levels and deliver a clear and decisive breakout. Since the breakout, Solana did not face any resistance until it reached $126. A minor profit booking at the $126 level pushed Solana back towards the $105 level, which is a decline of over 20% on the hourly chart.
But this cryptocurrency managed to respect the trend line and wait for the MACD bullish crossover to reach higher levels. The RSI level is near a neutral level on the hourly chart indicating an inability to form a decisive mood. Nevertheless, such price action is necessary to carry forward the bullish sentiment. Once the MACD crossover occurs, it will help retest the resistance and trade higher.
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