Solana is a decentralized platform designed for building and running high-performance decentralized applications (dApps) and financial services on blockchain. It also supports its own cryptocurrency, SOL.
Solana was created in 2017 by a team led by Anatoly Yakovenko, a former engineer at Qualcomm and Dropbox. It uses a consensus algorithm called Proof-of-History (PoH), which enables very high blockchain performance – up to 65,000 transactions per second (TPS), much faster than most other blockchains like Bitcoin and Ethereum.
Solana also supports a variety of projects and infrastructure for developers, such as Solana Foundation, Serum DEX, Audius, and many others.
A brief overview of Solana – SOL.
Today we’ll discuss all possible scenarios for the movement of this coin, important levels and reversal levels, how to make a profit on this, and what to pay attention to.
On this chart, there is a strong downward channel that began in November 2021 and plummeted the price from $260 per coin to a level of $26. Currently, we are in a correction phase and have risen to the resistance level of $47. Now, everyone is interested in one question: what will happen next? We will now examine all possible scenarios for the situation’s further development.
- Scenario (Main) – The price will not be able to break through the important level at $47 and will continue its path down to the $14-15 per coin level. There are several reasons for this, which we will now discuss.
Reason number one – at the moment, there is a very large number of sell orders, and the coin does not have enough strength to break such an important level as $47.
Reason number two – this situation is similar to the trading figure Head and Shoulders. Head and Shoulders is one of the most common technical trading figures on the stock market, forex, and other markets. It received its name because its shape resembles a head with two shoulders. If the asset’s price forms the Head and Shoulders figure, it may mean that the bullish trend (ascending) will change to the bearish (descending), and traders following this trading figure may decide to sell the asset to profit from falling prices.
- Scenario (Alternative) – The price breaks through the Important level of $47 and only then can we consider a buying position. In my personal opinion, it is still too early to consider buying this coin.
