Key Takeaways:
- Solana’s 15-Day bull run ended on Sept 9 after surviving Bitcoin’s flash crash on Sept 7.
- Its native token, SOL, lost 32% high to low in 5 days between Sept 9 to Sept 13.
NEW DELHI (CoinChapter.com) — Public blockchain platform Solana, which claims to be the fastest blockchain in the world, seems to have run out of bullish tailwinds. The network’s native token, SOL, quadrupled its value in just 24 days between Aug 15 to Sept 7, going from a low of $42.41 to a high of $215.08.
However, SOL pulled back just after charting a new ATH of $221.37 on Sept 9. Since then, the token has charted five consecutive red candles on its daily chart. Although SOL’s bullish momentum has waned, it is worth noting that the token rose more than 10,000% YTD and 1000% in the last 6 months.
Moreover, Sam Bankman-Fried, founder of crypto derivatives exchange FTX, believes Solana is garnering increased interest from institutional players.
Solana Price Charts
Solana saw its sharpest decline since July 19 on Monday. The token started the day at $174 before falling to $160 in the next few hours. Though the Solana token tried to pull up during the early trading hours, it fell 14% between the day’s high ($175) and low ($150) levels.
SOL’s Moving Averages indicates a bullish outlook for the token, thanks to its impressive bull run. Solana prices are trading above their 50-Day (Red) and 200-Day (Green) MA trendlines, making SOL bullish across all time horizons.
If its prices continue to fall, Solana has immediate support at $148.21. In case of further decline, Solana can find support near its 26-Day (Yellow) Exponential MA at $133.5. Another support at $113.5 will come into play if the sell-off continues.
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In case Solana builds on its fundamentals, an uptrend would bring SOL near its immediate resistance at $177.86. However, if bulls push further, resistance at $191.299 will come into play. A sustained uptrend may lead SOL to cross over the $200 mark again, though resistance at $202 would cap further upside.
Meanwhile, trend-based momentum oscillator MACD may soon turn bearish for SOL. A bearish signal appears when the MACD line (difference between 12-Day and 26-Day EMA) crosses below its signal line (9-Day EMA of MACD).
Bars on the MACD histogram highlight the difference between the MACD line and the MACD signal line. The bars are waning and may soon turn negative, highlighting the upcoming bearish signal for the Solana token.
The relative strength index for SOL pulled back from overbought levels today. RSI is borderline neutral with a value of 65.90.
Solana Fundamentals
Solana’s rise upwards can be attributed to the growing popularity of NFTs. The recent launch of full Solana NFT integration by Audius, a blockchain-based music streaming platform, boosted the network token’s price. In addition, Solana claims itself to be the fastest blockchain network, which further acts as a fundamental.
Meanwhile, Sam Bankman-Fried, founder of crypto derivatives exchange FTX, believes the Ethereum challenger is attracting interest from institutional players. Mr. Bankman-Fried is helping the development of Serum, a high-speed, non-custodial DeFi Exchange built on Solana.
Also Read: Classic buy signal triggered on Solana chart as Huobi announces SOL staking feature.
Furthermore, he highlighted the launch of Pyth Network market-data feed fueled interest in Solana as well.
Solana is ‘one of the only blockchains that has a compelling long-term road map that will be eventually able to support industrial uses of crypto‘
Sam Bankman-Fried said
Solana’s global hackathon, which started on Aug 31, invites innovators to create and develop blockchain-based games, NFTs, and lending platforms. The event will last till Oct 8. Along with NFTs, blockchain gaming is also gaining popularity on the Solana network.
Blockchain gaming rewards players with collectibles that have real-world value. Some gamers complain about the quality of blockchain-based video games. However, the quality of games available on Solana has piqued gamer’s interest.
Twitter-based Solana enthusiast S◎L Big Brain listed some of the most popular games available built on the network. The gamer community’s excitement may translate into bullish tailwinds for the blockchain network.
At the time of writing, SOL was trading at $163, down 6.11% on the day.
