Blockchain is not just a term but a realm of endless possibilities. There is a huge reach on this blockchain network. With the exponential growth of decentralized finance, Solana has made its mark in the industry. Not only does Solana support DeFi, but it also facilitates decentralized applications. As a result, it will have improved scalability.
Solana uses a unique validation technique called hybrid model using both Proof of Stake and Proof of History protocols. These protocols allow Solana to reduce validation time to perform regular and intelligent contract transactions. With its super-fast processing speed, it has attracted massive interest from different institutions. To ensure uninterrupted scalability, Solana attempts to maintain lower transaction costs with its super-fast commit speed.
From 42nd in February 2021, Solana has worked her way into the top ten in just five months. Solana currently ranks 8th with a market capitalization of $33 billion.
Solana Price Analysis
Solana is beyond belief in terms of price action, and is expected to trade even higher. However, despite the price, the actual market capitalization is relatively small compared to Solana’s growth prospects with major blockchain networks. Additionally, Solana scales strictly on a sentimental value basis, as it is seen as a potentially strong competitor to Ethereum’s scalability.
Solana should be considered the most trending cryptocurrency according to its price action. The rise to new highs made the previous April 2021 high look like a retracement, where it topped out at $56. From $1.54 on January 1, 2021 to $130 on August 31, Solana is up 8,500% in just eight months. Not only is this a great achievement for Solana, but it also highlights Solana’s scalability.
SOL/USD is up almost 265% in just one month, and that rise was mitigated to new highs last week, where it gave a decisive breakout at $80. At the time, it was clear that Solana would hit a new all-time high much higher than expected. But the disturbing fact is the profit booking the day it reached 19%, and thereafter it closed in the red. The higher wick at new highs indicates a small scope of cascading profit booking. We will need to consider the price action on the hourly charts to clarify possible moves.
Both MACD and RSI were in extreme bullish sentiment despite the profit booking seen yesterday. RSI shows a level of 83 on the histograms. At the same time, MACD rejected the bearish crossover and rose with a consistent difference between the two moving averages, indicating positive sentiment on both the shorter and longer timeframes.
Solana is enjoying strong support at the $90-$95 levels, which could help it rebound in the event of continued profit booking. However, profit should be reserved and according to our SOL coin price forecastwait for the next few days for more clarity on the possible results.
Solana has seen a period of consolidation over the past couple of days, even on the hourly charts, which can be inferred as a tight consolidation zone. Higher trading volumes on August 27 helped Solana conquer consolidation levels and give a clear and decisive breakout. Since the breakout, Solana encountered no resistance until it hit $126. A small profit booking at the $126 levels pushed Solana back to the $105 levels, a drop of more than 20% on the hourly charts.
But this cryptocurrency managed to respect the trendline and wait for the bullish MACD crossover to reach higher levels. The RSI level on the hourly charts is near neutral levels indicating an inability to create decisive mood. Nonetheless, such price actions are essential to bolster bullish sentiment. Once the MACD crossover takes place, it will help recover resistance and trade higher.