SOL’s price prospect following the declining attitude in cryptos

Solana (SOL) is up 3% in the last 24 hours and is currently trading at $0.33. Despite the bearishness in the crypto markets, the altcoin has managed to remain in the green.

The overall cryptocurrency market is down today as Bitcoin (BTC) and Ethereum (ETH) prices have declined. BTC is currently trading at $9,290, while ETH is trading at $185. However, SOL’s price has remained relatively stable in the past few days.

Here are some key points:

  • The Solana SOL token has lost 79% of its value this year.
  • The token is being affected by the network outages and the overall bearish market.
  • SOL meets resistance at $36.4.
  • Support at $29.5 Solana (SOL) has had a difficult year so far.

Solana is a blockchain initiative dedicated to supporting decentralized apps. The network uses a hybrid consensus system that employs both proof-of-history and proof-of-stake methods.

The SOL token was trading at around $4 in mid-February. However, the token started to decline in March as the broader cryptocurrency market went into a tailspin. The sell-off accelerated in April as BTC and ETH prices tumbled.

Solana was founded in 2017 by Anatoly Yakovenko and Greg Fitzgerald. They are interested in making transactions fast and cheap. They think their DateTime technology can resolve the slow proceedings in PoW networks.

The native token of the network, SOL, is needed to pay for transactions. The total supply of SOL is 475 million with a circulating supply of 369.1 million as of May 4, according to Solana Scan.

SOL stakers can earn rewards by validating blocks and keeping the network secure. According to its website, the network can process 50,000 transactions per second with transaction fees costing $0.0001.

The project has gained the support of some notable institutions in the crypto space such as FTX, Arrington XRP Capital, Multicoin Capital, and CoinGecko.

In 2021, Solana was talked about a lot because it was thought to be the “Ethereum killer.” But the blockchain technology has not been used very much since then.

There have been a lot of network outages, which has made people lose confidence in it. This has caused the value of Solana to go down.

SOL dips 79% year-to-date

According to the year-to-date price prediction, Solana has fallen 79% from its high of $173. According to data from CoinMarketCap, the sell-off has resulted in a 86% plummet since topping at $258 in 2021.

The market capitalization of SOL has plummeted from $77 billion to $12 billion over this period.

Solana’s market capitalization is currently $2.61 billion, putting it fifth behind Ethereum, BSC, Tron, and Avalanche on Defi Llama‘s rankings.

With $47.43 billion and $6.23 billion in TVL, respectively, Ethereum and BSC are ranked first and second. Tron and Avalanche have $5.3 billion and $2.7 billion, respectively.

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

Data Source: Tradingview

SOL has encountered resistance at $36 on the 4-hour chart. The token, however, is exhibiting some bullish momentum, having moved from $32.

The MACD indicator is also bright. According to data from CoinMarketCap, SOL is now trading at $35.79, up 5.81% in the past day and $2.93% in the last week.

Summary

Even though Solana is not as popular as it once was, traders can still make short-term profits. The recent network outages and the overall negative sentiment are some factors that are affecting SOL prices.

In the short term, a break above $35 will be bullish. The next barrier to watch is $42, which may act as a resistance in the near term.

On the other hand, a break below $32 could see Solana resume its downtrend. The key support levels to watch are $30 and $28. Any further losses could see the price head towards $25.

As Altcoins continue to lose popularity, SOL is one of the many that have been affected. However, there are still some traders who believe in the short-term gains the Altcoin market offers.