Solana Price Down by 1.33% – Time to Buy SOL Coin?
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- Solana is a highly scalable decentralized blockchain that claims to process 50,000 transactions per second.
- Former first lady Melania Trump announced her new NFT platform using Solana blockchain.
- Solana‘s long-term price prediction remains bullish above the $187 trading level.
Solana price forecast remains bearish; however, the trader’s focus will remain on $186 for a bullish bounce-off. The day before, SOL/USD closed at $190.047 after placing a high of $193.442 and a low of $175.770. SOL/USD surged and then reversed course on Friday, reaching its highest level since December 9th.
What exactly is Solana?
Solana is a highly scalable, decentralised blockchain that claims to process 50,000 transactions per second. It has been calling itself the most prominent competitor to the second largest cryptocurrency, Ethereum. The power of cheap transactions on the Solana network can be felt when paying transaction fees. Users can move their funds to the Solana network for a fraction of a cent.
The average transaction fee on the Bitcoin network is around $1.80, even after dropping nearly 58% this year. The average Ethereum gas fee per transaction stands at $22. This unique feature of the high scalability of Solana’s network has been making it more attractive. Thus, it’s causing an increased adoption, pushing its token prices higher on the board.
With growing interest in blockchain and crypto as a whole, this might be a good opportunity to buy Solana and rise with the market.
First lady Melania announces the NFT platform on the Solana blockchain.
The news about former first lady Melania Trump’s announcing her new NFT platform. She is doing it by using the Solana blockchain and the payment services of the crypto payment infrastructure startup MoonPay.
Both companies, MoonPay and Solana, denied a partnership with Trump. A representative from Solana Blockchain said that the choice of Melania Trump to use Solana Blockchain was completely organic, and this project was not part of any Solana-led initiative. Similarly, MoonPay also said that it was not possible to make credit card payments through MoonPay to purchase Melania Trump’s NFT collection.
Solana announces carbon neutrality.
The Solana Foundation reported that the Solana blockchain had reached its carbon neutrality goal for the year. According to the foundation, the milestone was accomplished by supporting refrigerant destruction to offset Solana’s carbon footprint in 2021. During refrigerant degradation, chemical cooling agents such as chlorofluorocarbons [CFCs] and hydrochlorofluorocarbons [HCFCs] are reduced or removed.
According to the official press release, “The Solana Foundation will support the permanent annihilation of CFC and HFC refrigerants, which are 10,000 times more potent than CO2 in terms of greenhouse gas emissions.” The project generates jobs and has a direct influence on reducing greenhouse gas emissions. “
Solana carbon neutrality would be maintained in 2022
In addition, the Solana Foundation stated that carbon neutrality would be maintained in 2022. Carbon-neutrality has previously been related to Ripple’s XRP Ledger [XRPL]. Ripple has previously said that the XRP Ledger is “one of the first major carbon-neutral blockchains.”
Furthermore, Ripple collaborated with the central banks of Bhutan and Palau to assist in establishing a CBDC. The American blockchain company’s carbon-neutral XRPL was a significant selling factor when working with Palau.
However, when it came to the amount of energy utilized in each transaction. Solana claimed that it used 1,939 joules, which equates to around 0.00053 kWh. In comparison, one XRP transaction requires approximately 0.0079 kWh. This represents a substantial variation in energy consumption. Solana uses a lot of energy, according to the official announcement. “It also consumes far less energy than other frequent blockchain transactions, such as an eth2 transaction (126,000 J), and ethereum transaction (777,600,000 J), or a bitcoin transaction (7,412,400,000 J).”
If Solana maintains its carbon-neutral proposal, it will be interesting to see if larger investors or central banks decide to call on the leaders of the fifth-largest cryptocurrency to assist in developing sustainable CBDCs. At the time of publication, SOL was trading at $187.97, up 4.92 percent in the previous 24 hours.The coin has reached the green zone and increased by 3.89 percent in the last seven days.
Technical analysis – Ascending channel to support SOL/USD at $187
Solana‘s long-term price prediction remains bullish above the $187 trading level. SOL/USD retested a strong support level of $188, which was extended by an upward trendline. Solana’s price has previously gained strong support above the 187 level on December 23 and 24. It seems like the region is working as a demand zone for Solana.
On the hourly timeframe, the SOL/USD price is testing a 50-period exponential moving average at 187. Therefore, a surge in demand above 187 levels can lead SOL/USD prices towards 194 and 197 levels. At the same time, a further upward can expose Solana’s price towards 204 resistance.
On the flip side, a breakout of 188 support levels exposes the SOL/USD price towards 184 or 177 support zones. The RSI is holding below 50 at 43, which is indicative of a downtrend in Solana. A break below the 187 level exposes the Solana price towards 184 or 177 support. So let’s consider taking buy trades over 187 and vice versa. All the best.
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