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Solana

Solana price clings to 88% upswing narrative as SOL joins BTC and ETH on Bloomberg Terminal

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  • Solana price is currently testing the $216 support level in hopes of triggering an 88% rally.
  • SOL becomes the third cryptocurrency after Bitcoin and Ethereum to be listed on the Bloomberg Terminal.
  • A breakdown of the $200 psychological barrier will invalidate the bullish thesis.

Solana price is currently hovering around a crucial demand zone that needs to hold for an upswing to emerge. Breaching this barrier will reduce the probability and also open SOL up for a potential correction. 

Bloomberg welcomes SOL after BTC and ETH

Solana price can now be tracked on the Bloomberg Terminal via the “Bloomberg Galaxy Solana Index,” making it the third cryptocurrency after Bitcoin and Ethereum to have this feature. Tim Grant, the Head of Europe at Galaxy Digital, announced that this development was a result of the collaboration with Galaxy Digital and Bloomberg LP. 

Grant stated,

This marks our fifth index in the Bloomberg Galaxy family of indices which are… Bloomberg Galaxy Bitcoin Index (BBG TICKER: BTC), Bloomberg Galaxy Ethereum Index (BBG TICKER: ETH), Bloomberg Galaxy Crypto Index (BBG TICKER: BGCI), Bloomberg Galaxy DeFi Index (BBG Ticker: DEFI), Bloomberg Galaxy Solana Index (BBG Ticker: SOL).

This institutional-grade index for Solana will now be available globally to 400,000 users, and the pricing source will allow Solana-based products to be launched in jurisdictions that allow it.

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Solana price contemplates directional bias

Solana price set up two rounded-bottom structures between September 9 and November 2. The larger structure is referred as the cup, while the smaller one that follows it is known as the handle. The peaks of these structures can be connected using a trend line to form a horizontal resistance barrier at $216.

The cup-and-handle pattern forecasts an 88% upswing to $407, determined by adding the distance between the cup’s swing low and the horizontal supply barrier at $216. 

While Solana price broke out on November 2 and rallied 20%, the recent downswing has undone the gains.

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Currently, SOL is hovering around $216 and inside a demand zone, extending from $208 to $218. Solana price needs to hold above this area to have the highest probability of an upswing. 

In some cases, Solana price could extend its climb and retest the 161.8% Fibonacci extension level at $430.

SOL/USDT 1-day chart

SOL/USDT 1-day chart

However, a failure to do so will result in a retest of the $204 support level. If SOL produces a lower low below the $200 psychological level, it will invalidate the cup-and-handle bullish thesis. In this case, SOL could head to the $178 support level, where the buyers could give the upswing another go.

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Solana price positioned for new bull rally towards $275

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  • Solana price breaks out above bull flag, indicating uptrend continuation.
  • Moving and holding above $220 is essential to continue bullish momentum.
  • Failure to extend higher here could see new monthly lows.

Solana price has hugged the top of the Cloud (Senkou Span A) as its primary support level for the past week. The respect of Senkou Span A as support has resulted in Solana moving and closing above one of the two Ichimoku levels necessary to confirm a new uptrend.

Solana price must close above the $220 value area before testing $275

Solana price is up against its primary and final Ichimoku resistance level on the daily Ichimoku chart. The Kijun-Sen within the Ichimoku system represents medium-term support and resistance and is the primary level for intraday and intraweek trading strategies within the Ichimoku system. The Kijun-Sen at the $220 level is precisely where Solana finds itself pushing against.

A daily close of Solana price above $220 provides more protection from near-term downside movement than it does upside potential for a couple of reasons. First, a close above the Kijun-Sen would convert the Kijun-Sen from a resistance level to support. Second, because retests of breakouts from bull flags are extremely common, the combination of the Kijun-Sen and top of the bull flag create a double-support structure.

SOL/USDT Daily Ichimoku Chart

Solana price does have downside risks. The Composite Index has created a high above the previous high peak on November 21st, while the candlestick chart shows the current daily high is lower than the November 21st high. This creates a condition known as hidden bearish divergence – a warning that the current drive higher may fail.

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It is essential that Solana price close above the November 21st open of $217, or the hidden bearish divergence may push Solana back into the bull flag and likely even lower to test the bottom of the Cloud (Senkou Span B) at $184.

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Will Solana [SOL] give Ethereum [ETH] a run for the money?

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Solana is showing a promising situation in terms of attracting more projects, and it seems the battle with Ethereum continues strongly. There are many projects announcing every day about migration from Ethereum to the Solana network.

It seems the gas price and scalability features of the latter are attracting them significantly. Although Ethereum itself is in a good position because of various sectors like DeFi, NFT, and metaverse running on it, Solana has been successful in hosting more projects and may give Ethereum a run for the money.

One of the latest projects announcing a migration to Ethereum is Crowny. Crowny is a platform that connects users to their loved brands. It rewards users for engaging with their lived brands and is growing fast in terms of attracting users. According to the latest announcement on Twitter, the platform is set to migrate from Ethereum to Solana on December 8th. The real reason behind this migration is lower costs per transaction on Solana compared to Ethereum.

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Besides, the scalability features let Crowny and Raydium grow faster and attract more users. According to the announcement, the Crowny team believes in Solana’s various features:

“Solana blockchain offers extremely low costs per transaction and ensures limitless scalability for years to come. This cutting-edge architecture is all about speed. It’s the fastest blockchain around. As hardware improves, so does the network.”

Another good news for the Solana community comes from the famous decentralized web browser Brave. Brave browser announced some days ago that it partners with Solana to integrate that blockchain into the browser and make it the default for dApp support. It’s great news for Solana because Brave is currently one of the most famous browsers in the market. It can benefit developers on Solana who can provide their dApps to a bugger user-base in this scenario.

Brave has 42 million monthly active users and 1.3 million verified creators. The reason for choosing Solana is the same as Crowny. Lower transaction fees and supporting fast Web3 applications are great benefits of this blockchain. Brendan Eich, CEO, and co-founder of Brave said:

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“With more and more users and creators requiring tools for fast and affordable access to the decentralized Web, this integration will seamlessly pave the way for the next billion crypto users to harness applications and tokens.”

More users and projects on Solana means more opportunities for growth in this ecosystem. When the migrations from Ethereum to Solana grow, it shows great benefits in the competition that can even result in higher deployments and higher prices for the SOL token.

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This is causing users to choose Solana over Ethereum

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Ethereum’s gas fees and speeds are costing not just users, but the ecosystem itself as more and more players are migrating to rival blockchains.

The latest stakeholder to make the move is Crowny – an app rewarding shoppers for various interactions with brands. The date for its migration to Solana is slated for 8 December.

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In a Twitter thread, Crowny stated,

“Solana blockchain offers extremely low costs per transaction and ensures limitless scalability for years to come. This cutting edge architecture is all about speed. It’s the fastest blockchain around. As hardware improves, so does the network.”

At press time, Ethereum’s gas fees were high, with an ERC20 transfer costing around $22.63 on average.

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Source: Etherscan

Moving day is here

Choosing Solana over Ethereum isn’t a novel incident. In July 2021, Powerledger, an Australian company in the area of technology and energy, decided to move its platform from Ethereum to Solana.

Co-founder and executive chairman Dr. Jemma Green had commented,

“Our new blockchain platform based on Solana will be tens of thousands of times faster than Ethereum but also energy efficient. As we started this project to allow renewables to be scaled, part of our mission is to be light on our own carbon footprint.”

Another example is the privacy-protecting Internet browser Brave. The company announced a partnership with Solana at the Breakpoint Lisbon event in Portugal. Brave’s official release stated,

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“High transaction fees seen on Ethereum (due to increased interest in crypto and DeFi) have held some users back from transacting. Solana is the fastest blockchain in the world and provides the opportunity to scale blockchain transactions for as little as $0.001 – $0.002 USD per transaction, providing significant cost savings for users.”

Furthermore, the Brave crypto wallet is set to integrate Solana in 2022, for decentralized app support.

Looking at these migrations and the reasons for the same, it appears that speed, fees, and energy efficiency are thorns on Ethereum’s side.

Time to pull out the roadmap

Needless to say, there’s a lot of pressure to bring Ethereum up to speed – literally. At the last All Core Devs meeting, Ethereum developers discussed diverse proposals to reduce transaction fees, which are also rising in rollups. 

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Developer Tim Beiko also noted that time was of the essence. He claimed that the proposals needed to ship before a fork in February. 

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