Solana (SOL) is a decentralized finance platform and a highly functional open source project based on blockchain technology. Although the idea and initial work on the project began in 2017, the Solana Foundation, based in Geneva, Switzerland, officially launched Solana in March 2020.
One of the innovations Solana brings to the table is Anatoly Yakovenko’s Proof-of-History (PoH) consensus. As a result, the protocol can be scaled more effectively, increasing its usability. Solana is well-known in the cryptocurrency space due to its incredibly fast blockchain processing times. Solana’s hybrid protocol, in addition to smart contract execution, significantly reduces validation times for both transactions and smart contracts. Solana’s lightning-fast processing times have also piqued the interest of institutional investors.
Let’s take a look at SOL’s technical analysis.
The current price of SOL has changed 15.22 percent in the last 24 hours. It has grown by 15.22 percent. In addition, the price increased by approximately 78.45 percent in the previous week. In the last 24 hours, SOL has traded between $64.25 and $80.12.
Technical Analysis of SOL
DEX, based in Solana, raised $70 million in crowdfunding last Thursday. Following this news, it broke the bear market trend that had been in place since May 2021 and reached an all-time high. It has risen to tenth place in terms of market capitalization.
The current price of $72.54 is higher than the pivot point of $ 70.97. At $78.55, a resistance retracement has formed. Traders can go long at the current price because the first resistance level has been formed at $78.55. If it breaks through the immediate resistance, traders can go long with a target of $83.24. The gaps in the resistance point to a long shot on SOL.
If it falls below this level, it will look for support at $63.39, $58.70, and $51.12. Going short on SOL is advised if the price breaks between these levels.
The RSI is currently at 88.66 percent. The RSI is in the overbought zone, indicating very strong buying pressures. After finding support at 69.15 percent, buying pressures have pushed the RSI higher. After the month of July, the SOL experienced higher highs and lows, but it has now surpassed the 70 percent threshold. If the buying pressure continues, the RSI will remain in the overbought zone.
On the daily chart, the MACD and EMA are rallying; the lines are above the zero range, indicating a buy. The buying pressure is far greater than the selling pressure.
Today and Tomorrow
The market appears to be very bullish on SOL. The indicators point to a bullish trend, and it is preferable to go long on SOL.
We can expect the bullish trend to continue tomorrow.