Solana prices have been on a downtrend since November 2021. In fact, the entire cryptocurrency market retraced its high prices and lost more than 50%. Solana on the other hand reached a very critical price. Prices can either rebound higher, or slide lower. This all depends on the global dynamics of the cryptocurrency market in general. Professional traders can benefit either way once the trend gets confirmed. For Solana, a clear technical pattern is in formation. Will Solana go up soon? In this Solana price prediction article, we show you both case scenarios.
What is Solana Crypto?
Solana is a decentralized blockchain. It is developed to facilitate scalable, user-friendly apps. Solana’s native cryptocurrency is SOL. The SOL has received a lot of attention in recent days, notably during the current crypto rally. SOL runs just like how ETH works on Ethereum. The only difference is that the SOL holders stake the token to verify transactions within the PoS consensus mechanism. It also allows users to engage in governance methods, earn bonuses and pay gas fees. Solana is a single-chain, delegated-Proof-of-Stake.
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What’s so special about Solana Blockchain?
Solana uses POH or Proof of History consensus mechanism in place of layer 2’s or side-chains to solve scalability issues. As a result, the time between transactions is much shorter. In the POH consensus model, all nodes run their own internal clock. Once all are in coordination, the state of the blockchain can get verified at a faster rate.
As POH captures screenshots and shares them as per the last phased time, it becomes more cost-effective and fast in comparison to POS and POW blockchains. To make the ecosystem safe and scalable for adoption, the blockchain uses the Verifiable Delay Function(VDF). In a VDF model, the cryptographic functions identify the time passed with that of the output generated. Hence the output generated should always be at a later time than the input query. In short, it makes the ecosystem safe, secure, and scalable.
Will Solana Price go up soon?
The main condition that must be met is breaking the drawn trend line. This trend line has served as resistance since the beginning and thus supports the downtrend. If Solana price breaks this trendline, it would end the downtrend and begin a larger uptrend. However, one must be careful that the Solana price does not form a fake breakout, as it did back in early April. There, the price was able to briefly break the trend line, but a short time later it fell below the trend line again, which is why the price fell again.
Solana Price Prediction – Where will SOL reach?
So far, there is no telling whether Solana price will break the overall trend line or not. It all depends on the market sentiment in the cryptocurrency market. However, it is safe to say that the price is likely to drop to $80, towards the strong psychological price area. After that, the course would have to decide whether to choose the bullish or bearish variant. Should the price take the bearish scenario, we expect the price to drop to at least $66 to test the next support. If the price decides to go bullish, we would expect it to test the $127-$133 resistance zone as shown in figure 2 below.