The crypto market has been consolidating for the past few weeks. Most investors already liquidated their cryptos and moved into stablecoins. No wonder why the list of the top 10 cryptocurrencies by market cap includes 3 stablecoins (USDT, USDC, and BUSD). During this phase, traders are the ones who are benefiting the most. With clear buy and sell areas, they are able to swing trade easily. Solana is one of those crypto projects that got affected pretty badly by the latest crash. Its prices crashed recently by more than 10% in the past 24 hours. Should you buy Solana after this heavy adjustment? Is Solana a good investment? Let’s analyze SOL in this Solana price prediction article.
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What is Solana Crypto?
Solana is a blockchain that is decentralized. It’s designed to make scalable, user-friendly apps easier. SOL is Solana’s native cryptocurrency. In recent days, the SOL has gotten a lot of attention, especially with the current crypto surge. SOL functions in the same way as Ethereum’s ETH does. The sole distinction is that SOL holders stake the token in the PoS consensus process to validate transactions. Users can also participate in governance procedures, receive incentives, and pay gas fees. Solana is a single-chain, delegated Proof-of-Stake, and uses Cloudbreak, a shared log that blocks transaction history from using too much computer space.
Why is Solana price down?
In the past 24 hours, Solana prices crashed by more than 10%. Looking at figure 1 below, we can see a downtrend channel forming ever since mid-May 2022. SOL prices consolidated inside this downward channel. Swing traders managed to bank big by simply buying and selling around those upper and lower trendlines.
Solana prices always retraced lower when they reached the top trendline, as shown in figure 1. This happened in tandem with the entire crypto market, which shows that most cryptocurrencies might be taking a short breather after an extended rise in prices.
Solana Price Prediction – Will Solana reach 50 $?
Solana is currently in a downtrend. We don’t expect prices to suddenly soar to $50 overnight. However, if prices were to break out of this bearish trend, we need to see the $45 price mark broken first. If this happens, we can say that the downtrend ended and we might enter a small consolidation phase. Once done, the 50$ price mark should be achievable.
However, we don’t assume that this will happen if the cryptocurrency market does not recover as a whole. Bitcoin still has a dominance of +45% over the crypto market, so anything affecting the crypto market, in general, will definitely take a toll on Solana prices. SOL can continue to crash towards $30 if the bear market continues.
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