Solana price has struggled lately. SOL is trading at $43.74, which is slightly below the all-time of $50.3. Its market capitalization has dropped to more than $11 billion while its ranking is at 16. It is sandwiched between Stellar and Theta.
What is Solana? For starters, Solana is a fast-rising blockchain project that allows developers to build decentralized applications. The platform is similar to Ethereum, which is dominant in the industry.
However, recently, more developers have turned to the network because of its lower costs and reliability. Indeed, according to the developers there are now more than 250 projects built on its ecosystem.
By April 2018, there were more than $470 million in USDC-SPL and more than $190 million of USDT. Some of the other popular projects are Hxro, Step Finance, Civic, and Pyth Network. Therefore, this week, Solana price has retreated partly because of the price and dominance of Ethereum surges.
Solana price prediction
In my last update on Solana prices, I predicted that the price would surge to $50. This happened on Sunday last week.
The three-hour chart shows that Solana found a substantial resistance at its all-time high of $50.3. The currency has also formed a channel whose support is at $40.35. It has also declined below the 25-day moving average while the MACD has dropped below the neutral line. The total volume also seems to be falling.
Therefore, in my view, the outlook for the currency at the current price is neutral. Traders should watch out for the support and resistance levels at $40 and $50. In the longer term, however, I expect the Solana price will break out higher.