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Solana blockchain touted as an Ethereum killer, but frequent hacks are a concern
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The native token SOL has stabilized at $35.5
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The recovery will be determined by overall cryptocurrency sentiment
Solana SOL/USD trades back to $26 bottom that was in hit in mid-June. The coin is trading at $35.5, but the price seems to be stabilizing in a market correction. SOL has been at the same price level for the past 5 days. The coin’s monthly high was $47.
Solana is one of the most talked about blockchains in 2021. The blockchain has been touted as a true Ethereum killer due to its low transaction fees and faster transaction speeds. Investors looking for a cheaper alternative to Ethereum always turn to Solana.
While SOL remains steady at $35.5, several fundamentals may continue to keep it in check. One is general crypto sentiment. Cryptocurrencies remain mixed, with a correction followed by a short-term appreciation. This is evident for SOL as the price has been correcting after hitting $47.
Another major problem with SOL is its own ecosystem. Blockchains are frequently hacked, which keeps SOL in check. Investors are increasingly concerned that SOL may not be a true competitor to Ethereum. Ethereum is moving to a proof-of-stake consensus mechanism, which will provide more competition.
SOL remains strong at $35.5 level, bullish surge possible
Source – TradingvIEW
August 17 , a bear market is welcomed when the SOL breaks below the ascending triangle. However, bear market weakness has been contained at $35.5. Momentum indicators are in bear territory as indecision grows above the $35.5 level.
Concluding thoughts
While SOL is bearish , but as stability grows, $35.5 could be a turning point. A bullish reversal would see the SOL return to resistance at $42.
