Now that the crypto market is getting back up, many investors are looking into which one to buy. There are many aspects to consider when investing in cryptos. From the technical price action to the fundamental backing of the projects, investors need to consider many variables. One interesting cryptocurrency that is about to increase in prices significantly is Solana. Not only is this project progressing in its roadmap, but the technical price of SOL is hinting at a big price increase. Let’s talk more about it in this Solana price prediction article.
What is Solana Crypto?
Solana is a blockchain that is decentralized. It’s designed to make scalable, user-friendly apps easier. SOL is Solana’s native cryptocurrency. In recent days, the SOL has gotten a lot of attention, especially with the current crypto surge. SOL functions in the same way as Ethereum’s ETH does. The sole distinction is that SOL holders stake the token in the PoS consensus process to validate transactions. Users can also participate in governance procedures, receive incentives, and pay gas fees. Solana is a single-chain, delegated Proof-of-Stake, and uses Cloudbreak, a shared log that blocks transaction history from using too much computer space.
Is Solana a Good Investment?
Solana is definitely a very good cryptocurrency project. The crypto bear market took a heavy toll on all cryptos, which lost more than 60% on average since the beginning of the year 2022. Now that the bear market is over, Solana is currently trading at a very high discount. Other than that, there are 2 major advantages in investing in Solana.
#1 Solana has Smart Contracts
There are many crypto projects that solely rely on sending/receiving tokens. However, when Ethereum brought smart contracts to the crypto space, the industry became much bigger. Due to the many inefficiencies that Ethereum is facing today, many other competitors entered this big space, like Solana. Solana today hosts NFTs, staking, and many other services, which might become bigger in the future as they develop.
#2 Solana Labs announced the launch of their mobile device
Crypto enthusiasts were very happy to hear that Solana Labs recently announced the launch of their Android-based software for developing mobile web3 apps. Web3 is the latest craze in the crypto scene and is set to change the way we use the internet. With this announcement, many investors became bullish on Solana.
Solana Price Prediction – Will Solana price increase?
If we take a closer look at figure 1, we can see that Solana reached its bottom price of around $26. From there, prices started to recover and an uptrend formed. This price action is very similar to most cryptocurrencies, especially to the one of Bitcoin. The current price of Solana stands around $38. If prices manage to break the $44 upwards again, we might see prices as high as $60, making a hefty 50%. This is because the $44 price area was an important support price which turned into a resistance recently. Once broken, prices can go to the next target afterwards.
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