Solana is considered by many as the Ethereum killer or top competitor, this is probably due to it's lightning speed and massive institutional backing over the years. However, Solana has also received its fair share of crazy dump since its all time high last year and network issues. This has left many wondering if the Solana's sunny days are over. Today I'm going to show you what I think might happen or where the price of Sol is going in the next few months, bring you up to speed of some of the recent development/updates and tell you why Solana might be on a brink of a fantastic recovery.
Before we get to the know, there's a disclaimer I need to declaim or before you Yolo your cash, there's a misconception I need to dash. Nothing in my post is financial advice, it's only here to expand your mind. Please do contact a financial advisor in your country as they're not too hard to find.Thanksđ.
Why's Institution pouring money into Solana?
The Solana blockchain uses a novel proof of Stake (PoS) consensus mechanism that timestamps transactions using proof of History- a special verifiable delay function that is outside the scope of this write-up đŖđŖđŖ( kinda complicated). Although the Solana blockchain has around 1700 validators where only 150 validators (called Solana clusters) controls most of the transactions. This relative centralization coupled with the insanely fast block time of about 400 milliseconds makes it possible for Solana to precess around 45,000-64,000 transactions per second. This implies that Solana is the fastest cryptocurrency out there today, even at the same speed with VISA. This is a big part on why the project looks interesting to institution investors. Also, one of the biggest institution investor is the FTX exchange which uses Solana as its defacto exchange chain and has poured tens of millions of dollars into its ecosystem.
Let's get into the charts
Now we could see the crazy downtrend Sol has been in for the past 6 months and I looks like we're sitting on a support level at around the $100 mark which in fact is on the 61.8% fibonacci retracement level- This is similar to where Cadarno ($ADA) is currently at right now. The resistance level to break is at $105,if we can stay above that for a while then we good đ.
With the recent sell off of BTC and the panic in the market, Solana broke the $100 support level but was quickly bought up. I think we're going to dump more (my opinion) possibly to $75 in the next few weeks. I'll start buying at this level and DCA down. if we break up to $110 and stay above $105, I'll get in and hold. But I think the most likely scenario is the dump below $100 thanks to 3day death cross looming on BTC . Check out my post about that here
source
It's gonna be a rough ride. Stay level headed and don't panic. If you've got some Solana, DCA and get more. I'm confident that in the next bull market, we would see amazing prices. I won't be shocked seeing Solana touching the $550 mark. Note: I am not a financial advisor, everything I post here are for educational purposes and for fun. Like @themarkymark use to say "Anyone who tries to tell you the exact price of a coin in the future is full of shit đŠ" đ. No one knows what will happen, just remain level headed, DYOR and enjoy the moment. Do have a wonderful week ahead. I'll catch you on the next one â đ