- Solana price appears to be gearing up toward its next target at $310 before putting further optimistic aims on the radar.
- The Ethereum-killer is one of the few currently existing public blockchains that could scale to millions of transactions per second.
- Considering the SOL price history, the token could easily climb 800% to over $1,500.
Solana price has witnessed a considerable surge, climbing over 1,000% since mid-July this year. The Ethereum-killer’s rally is not over yet, as SOL could be repeating history as a massively optimistic target has been put on the radar since a bullish chart pattern has formed. The altcoin, which ranks fifth by market capitalization, could easily outperform ETH as the two tokens compete for adoption.
Solana price bolstered by rising adoption
Solana price could be bound for an explosive surge as its native blockchain is one of the few blockchains with a roadmap to scale millions of transactions. According to cryptocurrency billionaire Sam Bankman-Fried, the protocol is one of the few currently existing public blockchains that could scale to millions of transactions per second for fractions of a penny per transaction.
He added that not a lot of other blockchains have been focusing on scalability and reducing fees, including Ethereum. Bankman-Fried highlighted that mass-scale application businesses would need to be able to take on hundreds of millions to billions of users and transactions per second.
Ethereum transactions take a comparatively long time to get processed, and its gas fees – transaction fees – are relatively high. The ETH alternative, Solana allows users to pay much lower fees and receive faster transaction times. The benefits that the SOL protocol provides incentivize users to stay within the ecosystem, especially for decentralized finance applications and non-fungible token (NFT) purchases.
As Ethereum gas fees are back on the rise while activity on the network is picking up, users could see the Solana blockchain as a viable alternative. Since the protocol was launched in April 2020, SOL price has risen by around 16,000% so far this year, becoming the fifth-largest cryptocurrency by market capitalization in less than two years.
Solana price could easily octuple
Solana price has formed a bull pennant pattern on the daily chart, suggesting an outlook that swings in favor of buyers. By measuring the flagpole of the technical pattern, SOL is expected to climb 89% and reach $310.
Since the breakout above the upper boundary of the prevailing chart pattern at $166 on October 20, the bullish outlook was validated and SOL already surged 57%, reaching its all-time high at $260. Solana price is now only 19% away from the upside short-term conservative target at $310.
SOL/USDT daily chart
In the longer term, Solana price has the potential to climb 800% toward $1,523, the measurement of the ascent from the bottom to the top of the flagpole of the bull pennant. Although this figure may seem large at first, SOL has seen a tremendous run of over 1,300% since the last time the token has presented the same chart pattern.
The bull pennant pattern that formed on December 22 and broke out on March 26 presented a 94% upside target for SOL but realized a 290% bull run. The slice above the topside trend line of the pattern at $14 has eventually witnessed Solana price surge by 1,360%, reaching the top of the flagpole of the most recent chart pattern at $215.
SOL/USDT daily chart
However, Solana price could see periods of retracement and correction as the token explores reliable support before ascending higher. SOL could discover immediate support at the 21-day Simple Moving Average (SMA) at $222, then at the 78.6% Fibonacci retracement level at $209.
Additional lines of defense may emerge at the 50-day SMA, which coincides with the support line given by the Momentum Reversal Indicator (MRI) at $184, then at the 61.8% Fibonacci retracement level at $169.
Solana price at now-or-never moment as whales continue accumulating the altcoin
- 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.
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.
FXStreet analysts have evaluated the SOL price trend and predicted that breaking $230, the altcoin is expected to resume a parabolic uptrend.
New report says each Solana network transaction takes less energy than two google searches
- 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.
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.
Solana Price Analysis: SOL drops 15 percent, support found at $184?
- Solana price analysis is bullish for rest of the day.
- SOL/USD spiked below the previous low.
- Support was found around the $184 mark.
Solana price analysis is bullish today as we expect recovery after a 15 percent drop over the last 24 hours. Likely, SOL/USD will look to regain the loss later today as buying pressure returns.
The market overall saw strong selling pressure over the last 24 hours. The market leader, Bitcoin, declined by 7.8 percent, while Ethereum by 9.3 percent. Meanwhile, Solana (SOL) is among the worst performers, with a loss of over 11 percent.
Solana price movement in the last 24 hours: Solana spikes below the previous low at $187
SOL/USD traded in a range of $184.33 – $216.40, indicating strong volatility over the last 24 hours. Trading volume has increased by 4.5 percent, totaling $ billion, while the total market cap trades around $57.4 billion, ranking the coin in 5th place overall.
SOL/USD 4-hour chart: SOL found support at $184?
On the 4-hour chart, we can see a slight recovery over the past hours as the Solana price looks to return back above $190, indicating we should see further upside later today.
Solana price action has seen strong volatility over the past week as the market continued to set lower highs. After peaking at $260 on the 6th of November, SOL/USD saw a continuous decline to the $190 mark.
From there, a sharp recovery followed last week, peaking at $240. Selling pressure returned early this week, slowly leading SOL lower again until a strong spike lower began late yesterday.
This Solana price action development has resulted in a new lower low set at $184. Buying pressure has returned over the past hours, taking SOL/USD back above $190. Likely, SOL will continue to regain some of the loss over the next 24 hours as sellers are finally exhausted.
Solana Price Analysis: Conclusion
Solana price analysis is bullish today as another strong lower low has been set after a 15 percent drop. Therefore, we expect SOL/USD to have found a bottom at $184, leading to recovery over the rest of the day.
While waiting for Solana to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.