Free website traffic generator
  • Thu. Aug 18th, 2022

SOL price outlook following bearish sentiment in cryptos

ByNdasi Tata

Jul 7, 2022
1654713077651 92bdc46d d077 4d56 9669 95993cd7d5e1 1
1654713077651 92bdc46d d077 4d56 9669 95993cd7d5e1 1

  • Solana’s SOL token plunges 79% YTD

  • Token affected by network outages and overall bearish market

  • SOL faces resistance at $36

Solana is an open-source blockchain project aimed at supporting decentralized applications. The network uses a hybrid consensus model comprising the proof-of-history and proof-of-stake algorithm.

Founded in 2017 by Anatoly Yakovenko and Greg Fitzgerald, Solana has been keen on making its transactions scalable and low-cost. Its developers cited the slow transactions in PoW networks and how its timestamp technology could solve the drawbacks.

Solana’s popularity surged in 2021 when it was poised to be the ‘Ethereum killer.’ However, the blockchain now seems to be a shadow of itself. Aside from the crypto crash in the first half of 2022, Solana has suffered numerous network outages. The challenges have shaken the confidence of its community driving value downwards.

SOL drops 79% year-to-date 

According to the year-to-date price outlook, Solana has plunged 79% since trading at $173. The sell-off has also seen the token tank 86% since peaking at $258 in 2021, according to data from CoinMarketCap. SOL’s market capitalization has then decreased from $77 billion to $12 billion.

Solana’s total value locked is currently at $2.61 billion at #5 behind Ethereum, BSC, Tron, and Avalanche as per Defi Llama. Ethereum and BSC have $47.43 billion and $6.23 billion in TVL, while Tron and Avalanche have $5.3 billion and $2.7 billion, respectively.

SOL meets resistance at $36 (4-hour chart) 

1657134522837 57801d5a 683c 4321 92d6 35c503e136dcSource: TradingView

From the 4-hour chart above, SOL has found resistance at $36. The token is, however, showing some bullish momentum having moved from $32. The MACD indicator is also bullish. The latest data from CoinMarketCap shows that SOL is currently trading at $35.79, after a surge of 5.81% in the past day and a jump of $2.93% in the past week.

Summary

Although Solana seems to be losing popularity, traders can still benefit from the short-term gains. The recent network outages and the overall bearish sentiment are some factors affecting SOL price. A surge above the $35 resistance can usher in some bullish momentum, and the $42 will be the next resistance to watch.

The post SOL price outlook following bearish sentiment in cryptos appeared first on CoinJournal.

Ndasi Tata

Ndasi Tata is a Cameroonian-born Bitcoin entrepreneur and former state journalist who's also known for being a Bitcoin and Blockchain advocate. He's a crypto lover and reporter and has promoted several crypto projects within the African Continent. He uses a variety of social media and online channels. In addition to running a successful Facebook page with thousands of fans, he also promotes blockchain and bitcoin development initiatives on the well-liked YouTube channel #cryptoafrica-now. He earned an M.Sc. from the University of Nicosia in Cyprus in Blockchain and Digital Currency. At the University of Nicosia, Andreas Antonopoulos, Ph.D., and Antonis Polemitis, Ph.D., serve as role models.

Need Help?
Scan the code