Solana Price Down by 9.39% – Time to Buy SOL Coin?
The global crypto market has seen bearish movement in the last few weeks, recording a 5.82% decrease in the last 24 hours. However, this lull poses a great opportunity to buy SOL and profit when the market recovers.
Solana is an open-source protocol aimed at improving scalability and facilitating decentralised applications (DApps).
Before the bearish market movement, the scalability-centric token made impressive gains since launch and is currently the most staked proof-of-stake (PoS) protocol ahead of Ethereum and fellow Ethereum rival Cardano.
Solana’s technical and fundamental indicators will help us understand the price pattern and help us know if this is a good time to buy SOL.
Solana: Coin Market Position
At the time of writing, Solana is trading at a mid-month low price of $177. This current price peg depicts a 9.39% decrease in the last 24 hours. SOL currently dominates 2.51% of the global market as the asset is considered the 5th most valuable cryptocurrency by market cap.
The Solana native currency has a market valuation of $54 billion, which recorded a 9.26% decrease in the last day. The crypto asset has a 24-hour trading volume of $3.5 billion, up by 2.29% in the last 24 hours.
Solana has accrued a 458% increase in the last six months, and the year-to-date statistics show an impressive 7,300% increase.
This staggering figure reflects a bullish movement, and the current dip is a good entry point for investors to buy SOL.
The digital asset is testing key support prices and establishing a potential launchpad to new all-time highs (ATHs). Solana’s price movement has indicated a continuous uptrend in price within the last six months and is only expected to skyrocket from the current price.
Solana was trading at $31 on July 25 but doubled up on August 19 to the price peg of $78. In less than three weeks, the digital asset accrued over 200% of the previous value, trading at the price of $208 on September 9.
However, the coin took a momentary dip to $160 on October 18 before skyrocketing to an impressive $257 price peg on November 6.
With the current dip of $177, investors who intend to realise huge profits from Solana need to take advantage of this opportunity and buy SOL.
Solana: Technical and Fundamental Analysis
SOL’s technical indicators show a bearish movement along with the rest of the crypto market, with the 20-day moving average (MA) support price of $209 trading above its current price peg. The 200-day MA price shows a bullish trend as it trades below the current price at $110.
The Relative Strength Index (RSI) indicates that Solana is trading dangerously close to the oversold region with a value of 38. On the other hand, the moving average convergence and divergence (MACD) trend line depict a strong sell signal.
The imminent bullish trend of the Ethereum-killer is due to some fundamental factors. One of such fundamentals includes discovering and rectifying a bug in the lending contract of the Solana Program Library (SPL).
The bug was responsible for a rounding error that delivered more tokens than was deposited by the contract users, which put up to $2 billion worth of tokens at risk. The bug was found and fixed by security auditing firm, Neodyme.
Solana has become the most sought after cryptocurrency for staking, displacing Cardano and Ethereum. The coin was found to have the highest value of staked tokens, with a total value of $84 billion. Solana currently has 77% of its circulating supply staked with an annual yield of 6.79%.