Is Solana (SOL) Going to $50?

After touching its all-time high at $260 in November 2021, SOL has been under immense pressure and has been through the slumps. Solana dropped 68% during the past 85 days. The next demand zone is around $50. If the bearish momentum remains intact, we might see SOL going towards $50 before any significant rally or rebound.

Solana network has been collaborating and working on huge NFT projects during the past few months. Rally.io is a top Ethereum-based platform for creators to make their own social tokens, which lets social media stars, bands, esports teams, and more interaction with and make money from their communities. Solana, a rival to Ethereum, will also play a role in the RLY Network’s bigger goals.

The Web3 venture studio run by Rally co-founders Kevin Chou and Mahesh Vellanki announced this week that it would help start-ups launch tokenized consumer products through the RLY Network on Solana. This is the first time this has happened. Solana, which is part of the RLY Network Association, has now added the RLY token to its platform. This means that the protocol can be used across different blockchains.

Solana gained a lot of momentum in the second half of 2021, thanks to more developers, the use of the DeFi protocol, and the growth of the NFT ecosystem. This led to a big rise in the value of Solana’s SOL cryptocurrency. Solana is said to be a “Ethereum killer,” because it’s cheaper and faster than Ethereum, as well as more energy-efficient.

Key Takeaways (SOLUSD)

• It’s been revealed that Solana Labs, which makes the Solana blockchain, is going to focus on a few upgrades in the next few months in order to help the network grow.
• People were worried about the network’s ability to handle more and more transactions. Solana’s blockchain development team, which includes its CEO, Anatoly Yakovenko, had to deal with the issues and solve them head-on.
• This is what Yakovenko said in a Twitter Spaces session with Austin Federa, the head of communications for Solana Labs. He talked about how upgrades will be made to Solana in the coming weeks. In Yakovenko’s words, their development team has set their sights on an upgrade in the next 4-5 weeks. Besides that, Yakovenko says that some upgrades have already reached the mainnet of Solana.

Price Analysis of SOLUSD

Fear & Greed Index: 20, Extreme Fear

All-time High: $260.06

ROI: 40355.09%

24h Change: -6.20%

7d change: -35.28%

Market Cap: $28,025,175,309

Circulation Supply: 314,967,411 SOL

Total Supply: 511,616,946 SOL

Weekly Chart Breakdown of SOLUSD

Source: TradingView

Sol’s market sentiment is extremely bearish at this time. The market could go to $50 if the bulls cannot hold above $80. Short-term corrections along the way on lower timeframes should be considered, with an overall bearish sentiment.

Daily Chart Breakdown of SOLUSD

Source: TradingView

SOL’s price is in a range above $80 and following a falling trendline. We might see a correction towards $120 before the further decline.

4h Chart Breakdown of SOLUSD

Source: TradingView

Market sentiment on 4h timeframe seems bullish at this time, and we can expect a rally towards $100. Or else a break below $80 will push the market towards $70.

1 Hour Chart Breakdown of SOLUSD

Source: TradingView

SOL needs to break above or below the range between $100-$80 for a clear picture. On 1h timeframe, the market sentiment is sideways.

Final Thoughts

Recent developments in DeFi world look promising for blockchain networks like Solana. But, we never consider fundamentals alone before making a decision. We have to keep an eye on technicals as well. And the technicals are bearish for Solana.