Solana Price Down 5.10% – Time To Buy SOL Coin?

• Investors might be looking to buy SOL even as the crypto market reels due to geo-political tensions in Ukraine
• You might want to buy SOL now as the asset has several impressive fundamental prospects
• But, short-term traders will want to wait and see if the asset hits any of its major indicators

The crypto market has taken yet another dive this week, marking another pain point for asset investors. While the market was trying to claw its way out of the recent price slump, increased geopolitical tensions have now weighed down on asset prices yet again. However, should you buy SOL even with everything that’s going on? Let;’s find out.

SOL is no stranger to crypto enthusiasts. The asset is the native token for Solana – one of the most popular and high-efficiency blockchains right now.

Developers flock to Solana

Solana was created by Anatoly Yakovenko. The platform operates a blockchain that allows for proper data storage. The asset also uses smart contracts – which enable developers to create decentralized applications (dApps) on the platform.

Smart contracts are key to Solana’s operation. For contact, there are thousands of applications dedicated to upcoming fields like decentralized finance (DeFi), blockchain gaming, and non-fungible tokens (NFTs) are built on blockchains.

For these applications to work, smart contracts are required. Smart contract functionality is the same thing that made platforms like Ethereum famous.

However, Solana has been especially popular because of issues with Ethereum. Ethereum has seen more developers building on it as the most popular blockchain. This influx of developers has led to scalability issues for Ethereum, with transactions taking longer and costing more.

So, many developers have tried to find substitutes for Ethereum. Solana offers support for up to 65,000 transactions a second, and its transactions are also much cheaper. So, developers have flocked to it.

Thanks to increased adoption, Solana’s SOL token has soared. The asset delivered almost 10,000% gains in 2021 – even when considering the effects of the bear market.

Solana Ecosystem Expands

One of Solana’s biggest drivers of growth so far has been its ever-expanding ecosystem of products. Picking up from 2021’s trend, more developers build on Solana and use the blockchain for its impressive features. As they grow, so should Solana’s prospects.

This week alone, Zebec – a crypto settlement platform built on Solana – successfully raised $15 million as it looks to scale its operations. Slope Finance – a Solana-based startup that creates cryptocurrency wallets – has also raised $8 million in its inaugural funding round.

Groth for these Solana-based products can only mean bullish signs for the blockchain.

Solana Expands Into Ecommerce

Another huge boost for Solana came earlier this year when its developers launched Solana Pay – a payment processor for ecommerce companies and point-of-sale merchants.

Solana Pay was launched in collaboration with FTX, Circle, Checkout.com, and Citcon. It will process payments in SOL, USDC, FTT, SRM, and more tokens. As cryptocurrencies continue to grow in their compatibility with ecommerce, Solana Pay is in a good position to steal some of that market share.

SOL Technical Analysis: Waiting For A Sign

Currently, SOL trades at $80.23 – down 5.10% in the past 24 hours. This is much more favourable compared to the broader market – which is down by 9.97% %.

However, a view into SOL’s technicals shows that the coin is a bit murky. SOL is trading below all of its moving average (MA) indicators.

The coin’s 10-day simple moving average (SMA) is $91.05, and SOL will at least need to attack this range before it can mount any serious grounds for gains.

But, it’s not all bad. The 23.6% Fibonacci retracement level is drawn from SOL’s previous major high sands at $86.23, so investors want to watch for this level before they buy SOL.

With a negative moving average convergence divergence(MACD), it might not be a good time to buy SOL right now. Again, waiting to hit that 23.6% Fib retracement level will be key.

But, if you’re a long-term investor, you might want to buy SOL soon as the assets relative strength index stands at 35.35 – quickly approaching the oversold level.

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