Solana’s upward trend has been one of the most surprising in 2021, thanks to the exponential growth that its network has seen. You are now trying to regain that strong direction, and to find out how likely you are to succeed, we run an analysis below.
At the time of this writing, SOL is trading at $ 218.32, accumulating a loss of 1.44% in the last 24 hours. Its market capitalization is $ 66,321 million, making it the 5th largest cryptocurrency.
The great potential of this network to scale, execute transactions quickly and cheaply, has made it one of the best platforms for the development of decentralized applications (DeFi).
Solana currently processes around 2,500 operations per second; However, the potential is much greater, since its validation mechanism called the history test, allows this network to process more than 50,000 operations per second.
Without a doubt, this great potential could continue to promote the growth of this network, as users continue to search for cheaper and faster alternatives to the Ethereum blockchain.
Technical analysis of the Solana trend
On the weekly chart we see that the price of SOL has been declining for three consecutive weeks.
The week that just passed ended up leaving a strong rejection of low prices, which speaks to us of a good probability that Solana’s uptrend will be resumed soon.
Price retraced towards 50% Fibonacci, and that may have been the bottom of the decline. Now momentum could go for the $ 300 (-27% Fibonacci).
As long as the price continues to mark higher and higher lows, the bullish scenario is the most likely.
From this time frame we see that there is still a short-term bearish bias.
However, recently the price of Solana respected a support close to $ 195.70, and because the dominant force is bullish, it is possible that the short-term trend will soon pass to buyers.
To confirm that the bulls have regained control the resistance at $ 230.50 must be broken. At the moment it is quite likely that this will happen soon.
As long as the support at $ 195.70 remains, the short-term bullish scenario will not be in jeopardy.
Solana tries to resume her uptrend. Source: TradingView.
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