Solana (COIN: $SOL), the promising “Ethereum-killer,” is a high-performance blockchain delivering scalable, decentralized applications. It utilizes innovative proof-of-history and proof-of-stake consensus mechanisms to achieve fast transaction speeds.
Solana has been observing a bullish pattern, and the primary catalyst for its potential surge is the renewed interest from institutional investors. According to CryptoJack, a popular crypto trader and YouTuber, Solana has developed a “rounding bottom pattern” on its chart, a classic bullish indicator in technical analysis. This pattern is characterized by a gradual decline, a stabilizing trend, and an upward breakout.
Solana (SOL) Price Trend
Solana is trading at $146.20, a slight 0.75% down in the last 24 hours. The total market value remains strong at $65 billion. Solana’s price has climbed an impressive 43% since the beginning of the year and a staggering 622% over the past year, showing its long-term potential upward trend.
If Solana can stay above the $135 level, it would support a bullish trajectory in the medium term. On the other hand, if it fails to do so, it could signal a return to a downward trend, potentially leading to lower price regions such as $120.
The Exponential Moving Averages (EMA) values for 20, 50, and 100 days are hovering closely and could potentially drive a golden or death cross. A golden cross confirms the long-term bullish momentum, while a death cross will lead to the potential long-term bearish scenario.
Solana’s Stellar Rise Challenges Ethereum’s Dominance
CryptoJack’s positive outlook on Solana is not an isolated case. Other analysts, such as Altcoin Sherpa, have maintained a bullish stance on the token, with projections of it potentially surpassing the $500 mark this year. This would represent a remarkable 242% increase from its current level.
Dan Smith, a senior research analyst at Blockworks, highlights that Solana’s total economic value is nearing Ethereum’s, indicating its increasing relevance in the blockchain space. This competition with Ethereum, the industry’s dominant player, is a testament to Solana’s growing influence. Furthermore, Solana has shown outstanding growth in the past year, surging by over 600%. In contrast, Ethereum has only seen a 63% surge over the same period, underscoring Solana’s impressive market performance.
Solana’s Expanding Partnerships
In a significant development, Solana Labs has expanded its partnership with Google Cloud. Its web3 gaming API, GameShift, is now available to Google Cloud customers. This partnership aims to make it easier for developers to explore web3 gaming technology and build blockchain-based features into their releases.
According to Davis Hart, the head of GameShift, “Our mission is to drive mainstream adoption of blockchain technology in gaming. GameShift becoming part of Google Cloud’s partner ecosystem allows us to accelerate mainstream adoption by extending these capabilities to their vast, global developer ecosystem.”
Integrating GameShift into Google Cloud’s ecosystem will provide developers with a streamlined path to build immersive blockchain experiences without the complexities typically associated with developing games leveraging blockchain capabilities.
Tackling Network Congestion
Solana developers have also released a new software update, v1.17.31, which is now recommended for general use by mainnet validators. This release is the first in a series of planned updates to address the network congestion issues that have plagued the Solana network in recent months.
The high use of bots and the resulting spike in “failed” transactions on the network had caused significant congestion, leading to a surge in transactional volumes, reaching as much as $4 billion in March from the usual figures of under $500 million per day in 2023.
Should You Buy SOL?
Solana recently collaborated with major projects like Filecoin and Coinbase, demonstrating its reliability, security, and decentralized platform. According to CoinJar CEO Asher Tan, Solana’s cutting-edge technology and the enthusiasm of its community are central to its identity and appeal. “In a cyclical industry that is easily influenced by novelty, Solana has bags of it,” Tan says.
However, much of the recent gains have come from capitalizing on the weaknesses of other chains. While effective in the short term, this strategy raises concerns about Solana’s long-term sustainability and ability to establish a distinct and enduring position in the market.
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