Solana Price Up 31.6% – Time to Buy SOL Coin?

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So far, the SOL price has been the top performer in the crypto market this week, especially with large-cap coins seeing sharp drops on Tuesday. This indicates savvy investors might be looking into buying it. This article considers Solana and the SOL token itself and whether the rally makes the SOL price attractive and a great point to buy.

Solana: Blockchain’s New Golden Child

SOLUSDT_2021-09-09_09-59-38 - Sol price

Solana is one of the most popular blockchain platforms in the world. One of the famed “Ethereum killers,” the blockchain looks to solve the famous “blockchain trilemma” – offering speed, scalability, and security to users and developers. Like Etheruem itself, Solana functions as a flexible and scalable platform for running decentralized applications (dApps). Just about everything is available here – from decentralized exchanges to non-fungible token (NFT) marketplaces.

Solana is especially famous for its speed, thanks to its use of innovative technologies like its proof of history consensus mechanism. The blockchain can process as much as 50,000 transactions a second – compared to the 15 or less that is available on the Etheruem blockchain.

Even despite its speed, congestion on the Solana blockchain is pretty low – and so are transaction fees. With this combination of low fees, high speeds, and scalability, Solana has indeed become one of the most impressive blockchain platforms out there.

SOL is the native token for the Solana ecosystem. The token’s primary use is to pass to nodes within the Solana cluster in exchange for on-chain programs and output validation. SOL can also be used to make micropayments. Additional uses include staking, which allows holders to get additional rewards. If users believe that the SOL price will rise and would like to hold, they could also stake it to earn rewards.

SOL: Price Movements in 2021

The SOL price has been quite impressive in 2021. The market’s downturns have indeed hurt the asset, but it has gotten back on its feet quite well.

Entering into 2021, the SOL price traded at $2.32. With assets jumping in value, it was no surprise that SOL immediately rose. SOL had gotten as high as $17.57 in February, and it hit a high of $59.04 on May 18. But, the downturn hit and the SOL price took a big hit. In five days, SOL hit $18.78 – down 68.1 percent at the time.

SOL never hit that low, but it came dangerously close several times. The asset hit $19.98 on June 20 following a market rout, and it dropped again to $22.04 a month later after a major market selloff. All this time, SOL never crossed the $45 price point.

But, August came and was an interesting point for the market. Large-cap coins saw massive gains, and SOL was no different. SOL’s one-month chart shows an impressive jump of 468.9 percent, with the coin jumping from $36.66 to $208.57. The coin itself had only crossed its all-time high on August 16, and its rise has been astronomical.

With its current price, SOL is now up 31. 6 percent in the past day and up 76.24 percent in the past week.

SOL: Technical & Fundamental Analysis

SOL is doing very well technically. The asset is trading well over its 20-day moving average (MA) of $117.58 and its 200-day MA of $40.72.

The coin’s relative strength index (RSI) stands at 92.50 – its highest point ever. This shows that investors are buying more of it. That shouldn’t dissuade you, however – SOL’s RSI has been above 80 for the past five days, and its price is still going up.

As for fundamentals, Solana sees more adoption. Decentralised exchange and derivatives trading platform FTX launched on Solana – recently launched an NFT marketplace on the blockchain.

Derivatives exchange Delta Exchange also launched options trading for SOL and ADA yesterday, giving investors new exposure to the coins. The company confirmed that both assets’ initial rollout of options would have daily maturities, with weekly and monthly maturities eventually coming later. Given that both assets are in hot form, this could be an opportunity for even bigger gains.

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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.