- 1 Solana crypto price surged 3.59% in the past 24 hours and currently trades at $36.27.
- 2 Solana crypto price has gained over 70% in the past two weeks.
- 3 Solana price is reaching a major supply zone which may trigger a profit booking among the investors.
Solana (SOL) is an open-source project that resides on blockchain technology. The Solana protocol is designed to facilitate decentralized app creation. Solana is known for the short processing time that the blockchain offers. Solana’s hybrid protocol allows significantly decreased validation times for transactions and smart contract execution.
Moreover, many of the current leading blockchain technologies use energy-hedging, time-consuming mining, or solving complex calculations and have higher charges per transaction. Solana claims to have reduced all those problems by using proof of stake and a special innovation called proof of history.
What Is Proof-of-Stake and Proof-of-History?
Proof-of-Stake is a consensus mechanism in cryptocurrencies that is used to process transactions and create new blocks in a blockchain. Earlier, Proof-of-Work was done wherein heavy computing was required to keep the blockchain secure.
However, Proof-of-Stake reduced the amount of computational work needed to verify blocks and transactions. Proof-of-Stake uses the machine of coin owners. The owners offer their coins as collateral for getting a chance to validate the blocks and in return they earn rewards.
Moreover, the validators are selected on a random basis to confirm transactions and validate the block information. To become a validator, a certain amount of staking is required. The validators can operate a node.
The validators need to have 32 Ethereum to be eligible to operate a node. The blocks are validated by multiple users before it is finalized and closed.
Proof-of-History is a special innovation made by Anatoly Yakovenko. PoH allows to validate the transactions even faster thus making it extremely efficient. It also uses less energy and lower charges which makes it more reliable.
Proof-of-History is a sequence of computations that allows blockchain networks to keep track of the order and timing of events without relying on a centralized clock or a trusted authority. It works by using a cryptographic function to generate a unique and verifiable timestamp for each event, such as a transaction or a block.
Top Projects on Solana
- Serum: Serum is a decentralized exchange (DEX) that offers fast and cheap trading of crypto assets across different blockchains. It uses a mechanism called a central limit order book (CLOB) to match buyers and sellers transparently.
- Star Atlas: Star Atlas is a grand strategy game of space exploration, conquest, and politics. It combines stunning graphics, alluring gameplay, and blockchain technology to create a realistic and persistent virtual universe.
- Saber: Saber is a stablecoin hub that enables fast and low-cost conversion of stablecoins and wrapped tokens across different blockchains. It leverages Solana’s high throughput and low latency to provide liquidity and yield opportunities for traders and investors.
On-Chain Look of Solana (SOL)
As per onchain data obtained from a crypto website, solscan.io, the maximum total supply of Solana is 561,250,992.7 SOL. Out of which, 419,293,886.5 SOL are in circulation accounting for about 74.7% of the total supply. The rest of 25.3% is in non-circulating supply.
The recent transaction data shows that a total of 239.351 Billion transactions have been done so far. The number of validators is 2,091. The total stake of Solana is 406,555,664.0986, out of which, 99.7% are current stakes and 0.3% are outstanding stakes.
Moreover, the number of active wallets saw an increment in the past month. As per the data shown in the above picture, the total number of active wallets increased from 200K to 260K in the past month.
Solana Price Reaching Major Supply Zone, Can it Reverse?
The daily chart illustrates that the Solana price has been experiencing a bullish trajectory. The price bounced back from the 50-day EMA and inclined nearly 70% in a very short span of nearly two weeks. The SOL price rose without taking any pullbacks.
The Solana crypto price has been up by over 78% in the past month. The monthly price chart showcases the formation of a strong bullish candle after a consolidation of over eight months. The price has a resistance near the round level of $50. The breakout of which may hike the price near the $100 level.
The recent surge has turned the long-term outlook optimistic as the price has surpassed both the 50-day and 200-day EMAs. The price may take pullbacks in the short term and then further resume its upward journey to conquer new heights.
Moreover, the Solana price is nearing a major supply zone from where a profit booking may be observed and the sellers may try to drag the price lower. The bulls need to accumulate more buying volumes at the lower levels to surpass the supply zone.
RSI Signals Price Entered An Overbought Zone, Can it Reverse?
RSI lines are showing an optimistic crossover of the SMA line indicating a bullish outlook. However, the RSI lines have entered an overbought zone which may be the early signs of a selloff.
The EMA analysis shows that the SOL price bounced back from the 50-day EMA indicating the bulls’ dominance in the short term. The EMAs are showing a bullish cross indicating an uptrend prevailing. The EMAs may act as a dynamic support for the price now.
Solana price has been experiencing a strong bullish trajectory and currently trades at $36.27 with an intraday gain of 3.59%. The SOL crypto bounced back from the 50-day EMA and rose over 70% in the past two weeks. The price is nearing a major supply zone from where it may face rejection and fall.
Moreover, the bulls need to surpass the supply zone to keep the price rising. However, it requires more buying volume to counter the sellers near the supply zone.
- Support Levels: $31.42 and $27.06
- Resistance Levels: $38.45 and $44.42
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.