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Solana price prediction: Is SOL a good investment this week?

Solana price prediction: Is SOL a good investment this week?

Last updated 5th Aug 2022
Disclosure
  • Solana's price outperformed its peers during the weekend.
  • Its price rose by about 10% from its lowest level during the weekend.

The Solana price has held steady in the past 24 hours even as the rest of the industry sees red. SOL is trading at 94.17, which is about 10% above the highest level during the weekend. Its total market capitalization has moved to about $30 billion, making it the 7th biggest coin in the world.

Solana holds steady

Solana is a leading blockchain project that seeks to solve some of the biggest challenges associated with Ethereum's ecosystem. This makes it one of the leading Ethereum-killers in the world.

Solana does that in a number of ways. First, it has better speeds than Ethereum. While Ethereum handles less than 30 transactions per second, Solana is able to process more than 2,000 of them. As a result, apps built using its ecosystem are significantly faster and more agile.

Second, Solana is built using a proof-of-stake mechanism from scratch. This is different from Ethereum, which was built using a proof-of-work mechanism that is known for its power consumption and slow speed..

Solana's ecosystem has over 350 active validators from around the world and over 5 million wallets. Further, in 2021 alone ot processed over 5.4 billion transactions.

As a result, Solana has seen remarkable adoption by some of the best-known projects in Web 3. For example, it recently announced a partnership with Brave, the parent of the Basic Attention Token (BAT). It also announced partnerships with platforms like Audius, Chainlink, Akash, and Arweave among others.

Solana's footprints are all over the blockchain industry. For example, according to DeFi Llama, there are 56 DeFi projects in Solana's ecosystem that have a total value locked (TVL) of more than $7.2 billion. Some of these apps are Serum, Quarry, Raydium, and Marinade Finance among others.

Solana price prediction

The four-hour chart shows that the Solana price declined to a year-to-date low of $80 in January and then rose to about $122 in February. Since then, the price has dropped by about 22% and formed a small head and shoulders pattern.

The coin also formed a descending channel pattern that is shown in green. It also moved slightly below the 50-period moving averages.

Therefore, there is a likelihood that the coin will resume the bearish trend as bears target the lower side of the channel at about $85. This view will be invalidated if the price moves above the key resistance level at $100.

Crispus Nyaga

Crispus Nyaga

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.