Solana Price Up 29% – Time to Buy SOL?

The broader crypto market is rallying after a scare yesterday that saw Bitcoin drop below $30,000 for the first time in six months. The bulls were able to take the leading cryptocurrency back above that point, and several other large-cap assets followed suit with big gains.

SOL was one of the best performers of the day, with the asset currently posting double-digit growth. So, it is understandable if you would want to buy SOL to hodl for the long-term.

However, it is always important to do your research before you buy SOL. Like most digital assets, Solana is susceptible to price swings. So, what is the market saying about it?

What is Solana?

Solana is a web-based, scalable blockchain platform. It is a standalone blockchain, providing access to fast, secure, and scalable apps and marketplaces.

Solana has emerged as one of the most popular blockchains, especially for those in the decentralized finance (DeFi) sector. It supports up to 50,000 transactions per second as well as 400ms block times. With the Ethereum blockchain bleeding users due to its fees and scalability issues, Solana has emerged as one of the top “Ethereum killers.”

SOL is the native token for the Solana network. It is used for micropayments on the blockchain, and it also works for staking in case you would like to earn additional rewards for your activity on the network.

SOL Price Action

SOL enjoyed big gains early in the year when the market was on a rally. It rose to a high of $58.28 in the middle of May, and its price actually stayed pretty solid when the downturn started and assets started to lose value. It eventually dropped bottoming out at $18.8 on May 23.

The past month has been about recovery for SOL. it hit $44.1 on June 7, prompting many investors to buy SOL as they hoped that it would start a bigger rally towards its all-time high.

But, the market correction hit the asset’s price once more, and its current price peg of $31.26 marks a 65 percent gain from its bottom. It also represents a 29 percent gain in the past 24 hours.

SOL Technical and Fundamental Analysis

SOL’s technicals are quite mixed. For one, the asset has a low relative stretch index (RSI), with the 42.82 score showing that the asset is underbought.

However, the asset is significantly trailing its 20-day moving average of $36.83. It is highly unlikely that SOL crosses this point in the next day, although the current market rally extending could see it make some huge gains.

For fundamentals, there is some big news coming in for Solana. Earlier this month, Solana Labs- the blockchain’s developers – raised $314 million in seed funding. The capital raise included heavyweights like Polychain Capital, Andreessen Horowitz, CoinShares, and Alameda Research.

Solana Labs will use the raised funds to bankroll some of its existing and forthcoming decentralized platforms and applications. The company also plans to establish a venture capital arm and trading desk for projects on the Solana network.

SOL has also gotten a bit of a boost as Grayscale Investments – the largest asset management firm in the crypto space – plans to open investment trusts that are focused on more assets. SOL was one of the tokens named in the endeavor.

Backing from Grayscale will definitely help the asset, as investors would be able to buy SOL and invest it wisely. Grayscale has shown to be one of the best and brightest in the crypto space as far as investments are concerned.

SOL will also benefit investors in the long run. The asset is sure to return to profitability once the market downturn blows over as it has an impressive use case.