Solana (SOL) Overview:
Solana is a blockchain network offering smart contract functionality, NFTs, and decentralized applications (DApps), similar to Ethereum. Launched in 2020 by Solana Labs, its native currency is SOL. Solana’s key goal is to provide a scalable alternative to Ethereum, capable of handling 65,000 transactions per second while maintaining low transaction fees.
This scalability is made possible by Solana’s unique architecture, including its use of Proof of History (PoH), a variation of the Proof of Stake (PoS) consensus mechanism. PoH automatically timestamps each block, allowing the blockchain to efficiently track the order of transactions. This eliminates the need for network validators to coordinate with one another, enabling Solana nodes to process transactions simultaneously. As a result, Solana can offer high scalability with minimal transaction fees of $0.00025.
SOL, the network’s native token, is used for paying transaction fees and participating in staking. Developers deploying smart contracts, NFTs, or dApps on Solana must pay fees in SOL. Additionally, SOL holders can vote on proposals regarding future network upgrades. Although there is no maximum supply cap for SOL, the total supply is 572.7 million, with about 444.3 million currently in circulation.
However, the last month solana is on a bearish trend.Will it Continue After an 18% Monthly Decline? Altcoin News Solana’s price recently dropped to a monthly low of $122. Scammers are taking advantage of Solana’s token extension to burn users’ crypto assets. The cryptocurrency market remains in a bearish phase, with the total market capitalization falling by 4.33%. Despite this, trading volume has increased by 17%, indicating heightened activity amidst the downturn. Bitcoin, the largest cryptocurrency by market cap, saw a 4.66% decline, contributing to a broader drop in altcoins. Ethereum also experienced a 6% decrease, reaching a 28-day low of $2,313. Solana, a leading altcoin, hit a monthly low of $122, marking an 18% drop over the past month.
Solana has faced significant bearish pressure for over a week, extending its monthly downtrend. This drop was largely anticipated by traders, especially after Solana’s funding rate turned negative around August 28, signaling expectations of further declines. The consolidation range between $126 and $160 has become a key area for short-term traders, who see it as an opportunity to profit from price fluctuations.
Amid this bearish sentiment, scammers have reportedly found new methods to exploit Solana users. Slorg, a member of Solana-based Jupiter’s Core Working Group, revealed that scammers are using an in-built Solana token extension to secretly burn users’ tokens shortly after purchase, adding to the challenges for the Solana community.
Will Solana Overcome the Bearish Pressure? From a technical perspective, Solana remains entrenched in a bearish trend on the daily chart. The 9-day Exponential Moving Average (EMA) sits at $135, while the current price is $128. The daily Relative Strength Index (RSI) is at 37, indicating strong selling pressure.
Looking ahead, if bullish momentum gains traction, resistance may be encountered at $138 and $149. However, if the bearish trend continues, Solana could decline further, with potential support around $120.
Traders and investors are keeping a close eye on these SOL price levels for signs of sustained bearish momentum or a potential bullish reversal in the near future.
