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Solana (SOL)

Solana Price Prediction: SOL patterns spell $250 by end of October

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  • Repetition of patterns is critical for the further uptrend in Solana.
  • Price action excellently withstood the sharp correction in cryptocurrencies.
  • The next step for Solana is to regain R2 monthly resistance and go for R3 monthly resistance within a few weeks.

Solana (SOL) has had a very choppy ride with price variations of 86% at one point in the market turmoil that made cryptocurrencies roll over at the beginning of the week. Price action in Solana has withstood this hurricane quite well and was at no point really at risk, as a repetitive pattern still shows its importance, even on a correction. 

The pattern is relatively easy to spot and has been going on since August 28. On the chart, it can be recognized by the purple short-term trend lines. Each time a purple line forms the backbone for the next leg upwards. Price comes back down after a significant break higher and includes a new purple short-term trend line again, which is the prelude for another portion higher. This pattern has already repeated itself four times and is still ongoing for the fifth time.

Fibonacci retracement confirms Solana patterns play

On days with a lot of variation in price action, the previous short-term trend lines were used as support in case the previous pattern broke. This was the case on September 7 and September 8.


SOL/USD daily chart

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Although the trend line originating from September 3 is a descending one, it still has its importance as it got two tests on the downside and one from the upside. With resistance turning into support, this level around $150 should withstand a future correction.

For the moment, Solana is testing the price action around $185. With the ascending purple trend line below and the R2 monthly resistance at $190, price action is getting a bit choppy, with buyers cashing in on their profit.

Another reason for the importance of these patterns, and the reason why they will hold support, is that they fall in line quite nicely with a Fibonacci retracement. Not only is there the pattern repetition, but Fibonacci levels are an additional reason for support and buyers to keep adding volume to the rally.

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Expect a jump further for a retest of $221.37. From there, it is a clear target toward $250, with just below there the R3 monthly resistance coming in at $248.12.

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Solana will become the next Bitcoin, says FTX CEO Sam Bankman Fried

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  • Sam Bankman-Fried told Kitco in an interview that the next Bitcoin would be a blockchain with high throughput like Solana and Avalanche. 
  • Though the Solana blockchain has failed to gain mass adoption, it is likely that it becomes the largest DeFi base layer.
  • Institutions and influential investors are flocking to the Solana ecosystem, driving demand higher and increasing value captured by the altcoin. 
  • Analysts are bullish on SOL price, predicting a rally to $305 as the altcoin continues to climb. 

The next Bitcoin has to be a blockchain with the potential to process thousands of transactions per second. Since the Solana blockchain can process 50,000 transactions per second, Sam Bankman-Fried sees potential in SOL becoming the next Bitcoin. 

Analysts are bullish on Solana price, predict a rally to new all-time high 

Solana price plunged below $200 in the Black Friday crypto bloodbath. The altcoin’s price has recovered from the drop and is trading close to $200 at the time of writing. There is a spike in institutional inflow and capital rotation into Solana over the past two months. 

Influential investors are bullish on Solana, contributing to a rise in the altcoin’s adoption. In a recent interview with Kitco, Sam Bankman-Fried (SBF) lauded Solana for the protocol’s ability to scale to millions of transactions per second. The FTX CEO said that it makes Solana an integral part of cryptocurrency adoption and the next Bitcoin. 

Solana’s scalability could help it evolve into the new Ethereum or Bitcoin, and SBF was quoted as saying,

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I am optimistic about Solana. She has every chance of doing this, which is very interesting, I think.

@venturefounder, a cryptocurrency analyst, believes that Solana may end up rivaling Ethereum with a rise in institutional adoption. 

Cryptocurrency analysts at “More Crypto Online” are bullish on Solana. Analysts have predicted a price rally to a new all-time high at $305 as the altcoin price trend reverses. 

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FXStreet analysts have evaluated the SOL price trend and predicted that by crossing $230, Solana could resume a parabolic trend. 

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Solana price at now-or-never moment as whales continue accumulating the altcoin

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  • Solana price has dropped by 10% over the past 24 hours, investors have continued accumulating the altcoin. 
  • Over $43 million in institutional capital flowed into Solana over the past week.
  • Sam Bankman-Fried, the co-founder of FTX, believes that another competing blockchain could disrupt Solana. 
  • Analysts argue that Solana price is likely to plunge to $169 before starting recovery to $200.

Solana price drops below $200 as crypto market capitalization drops. Analysts expect the Solana price trend to reverse with increasing capital inflow into the altcoin. 

Analysts await Solana trend reversal as whales buy the dip

Solana price dropped below $200 as billions were wiped off the total market capitalization on Black Friday. The altcoin price is currently on a downtrend, and analysts expect a trend reversal. Over the past week, over $43 million flowed into Solana from institutions. 

Whales have continued accumulating the altcoin through the dip and have a bullish outlook on Solana. 65 wallet addresses hold over a million SOL tokens, amounting to a total of $31.3 billion. Solana ownership is concentrated; therefore whale accumulation implies an upcoming price rally in the altcoin.

Sam Bankman-Fried, the co-founder of FTX, believes that Solana could outperform Ethereum. At the same time, Bankman-Fried considers the possibility of Solana getting disrupted by a competing blockchain.

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The FTX CEO commented on Solana taking over Ethereum, he said, 

It could happen. It could never happen.

An analyst at the YouTube channel “Adam Coins” is bullish on Solana. The analyst has predicted a trend reversal in SOL price in a recent video. Identifying a double bottom, the analyst expects the SOL price to make a comeback above $200 before climbing to $225, the next price target. 

Analysts expect the Solana price to remain above $200 over the weekend.

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FXStreet analysts have evaluated the SOL price trend and predicted that breaking $230, the altcoin is expected to resume a parabolic uptrend. 

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New report says each Solana network transaction takes less energy than two google searches

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  • A new report by the Solana Foundation said a single Solana transaction uses less energy than two google searches.
  • In the report, the Solana Foundation said that it will work towards ensuring that the network uses more reduced energy.

A recent report by the Solana Foundation has shown that each transaction on the Solana network uses less energy than two searches on Google. In addition, a transaction on the network utilizes about 24 times less energy than charging a phone. The Foundation recorded details of the energy use on the Solana network in a November 2021 report. The Solana Foundation said it contracted energy and climate advisor Robert Murphy to help initially “frame the environmental impact of transactions performed on the Solana global state machine.”

The report stated:

Transactions are the fundamental building blocks of Solana: Purchasing an NFT, making a trade, or other activities you can perform using Solana are all transactions.

Solana’s energy use

Stating the energy use in google searches and Solana transactions, the report revealed that a single search on google takes 1,080 Joules (J) while a single Solana transaction uses 1,836 J. In contrast, it takes about 36,000 J to power an LED light bulb for one hour. Also, 126,000 J goes into one eth2 transaction. 

The report further revealed that the entire Solana network uses an estimated 3,186,000 kWh per year. The amount of energy the whole Solana network uses annually equals the electric usage of 986 households in America.

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The Solana network is less decentralized than both Bitcoin and Ethereum, with 1,196 validator nodes, processing 20 million transactions annually. It relies on the Proof of Stake (PoS) consensus mechanism, which requires less energy compared to the Proof of Work (PoW) mechanism. The likes of Bitcoin and Ethereum use the PoW mining method. This causes their energy consumption to be on the high side. Per the Solana Foundation report, one Bitcoin transaction uses 6,995,592,000 J. Also, each Ethereum transaction utilizes 692,820,000 J. Following the switch to the PoS mechanism, Eth2 will expectedly use 99 percent less energy than the current mainnet. 

Solana Foundation promises lower energy usage

Even with reduced energy consumption, the Solana Foundation plans to further lower the Solana ecosystem’s environmental impact. According to the Foundation, there will be a new program by year-end. The program will enable the Solana validator network to be carbon neutral and offset the ecosystem’s footprint. The report concluded:

The Solana Foundation will continue to release periodic reports on Solana’s energy usage and take steps to minimize the ecosystem’s environmental impact.

Ripple (XRP) is another low-energy alternative. It uses 28,440 Joules for a single transaction. According to a report published by Ripple last year, the energy used for a million transactions on the network could power a light bulb for 79,000 hours. In comparison, the energy used for a million BTC transactions can out on a bulb for 4.51 billion hours. Due to the huge difference, Ripple stated that XRP is 57,000 times more efficient than BTC.

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