Solana Price Up 28.82% – Time to Buy SOL Coin?

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Investors have continued to buy SOL as the coin’s price is bucking trends and breaks through new all-time highs. The second week of September is here, and SOL is already breaking more milestone after another.

Of course, things aren’t all they seem. Some analysts have predicted SOL’s price movements in the past, even though the move to buy it remains strong. Below, we’ll consider the nuances behind SOL’s price.

Solana: A High-Value Blockchain Platform

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Solana is one of the hottest blockchain platforms in the crypto space at the moment. It is a web-scale blockchain that offers secure, fast, and scalable marketplaces and applications. The Solana blockchain currently supports about 50,000 transactions a second – much more than the more established chains, including Bitcoin and Ethereum.

Like many other new-generation blockchains, Solana aims to solve the blockchain trilemma – offering speed and scalability without compromising on decentralization and speed. The blockchain offers eight core technologies that enable transaction scalability, resulting in enterprise-level security and optimal speed.

With its robust protocol, Solana offers a platform for the development of decentralized applications (dApps) and marketplaces. Its infrastructure also keeps gas prices low – a huge issue that developers have had with Ethereum over the past year. In the league of “Ethereum killers,” Solana is a unique player.

Solana’s native token is SOL. As with most blockchains, SOL is used as Solana’s token for gas payments. Developers can buy SOL to perform micropayments, as well as for on-chain transactions and more on the blockchain. You can also buy SOL and stake it on the blockchain to earn more assets.

SOL: Price Movements in 2021

SOL has had a pretty impressive year. The asset started the year trading at $2.32, and it saw its value rise quickly thanks to the rally in the market. Developers also moved to buy SOL as they looked for alternatives to the Ethereum blockchain.

By May 18, SOL hit an all-time high of $57.83 – a jump of 2,392 percent from the beginning of the year. But, the market downturn came and the asset’s price was hit hard. The SOL price dropped to $21.05 just five days after its all-time high, marking a drop of 63.6 percent.

While SOL went through several other bearish cycles, it never hit that low point again. Of course, this isn’t to mean that the asset has a smooth ride. With other large-cap cryptos down, there wasn’t much of a reason to buy SOL. So, its price remained in the doldrums.

But, August came and things have improved significantly. SOL has been especially impressive, with the coin breaking bounds all the way. SOL climbed back above its previous all-time high on August 16, and the asset has not looked back.

As the coin’s one-month chart shows, SOL has jumped by 362 percent from $39.58 to $183.11. The asset’s current price is a gain of 28.82 percent in the past 24 hours and a gain of 50.22 percent in the past week.

The big movies for SOL have especially come in the past week. Investors have rushed to buy SOL as they’ve seen big gains in its price. Here’s a one-week chart for the asset:

SOL: Technical and Fundamental Analysis

SOL’s price is holding very strong, with the asset’s one-week performance pushing it above all technical indicators. Currently, SOL’ 20-day moving average (MA) stands at $105.43. Its 200-day MA is even lower at $39.05. With SOL beating both indicators comfortably, it looks set for even bigger gains.

The SOL relative strength index (RSI) is at 90. This means that more investors have trooped to buy SOL over the week as its price keeps jumping. But, it shouldn’t necessarily dissuade you.

There is currently nothing to tie this rally to. However, the recent rally has spurred increasing institutional adoption for the asset. Data from CoinShares shows that SOL’s weekly institutional inflows jumped by 388 percent in the past week to $13.2 million.

Leading decentralized exchange FTX also launched a non-fungible token (NFT) marketplace on Monday. The marketplace will be integrated into the Solana blockchain, allowing NFT craters and owners to trade their digital art across Solana and Ethereum. This should lead to move Solana adoption – a bullish trend for SOL.

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About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.