Solana's SOL coin is currently trading around the $40 level. Bearish sentiment continues to weigh on cryptocurrency markets. The Solana blockchain is facing ongoing challenges, the most recent being a block time delay, which has implications for block rewards.
In this article, we will discuss:
What is Solana?
Solana is a highly functional open source project that builds on the permissionless nature of the technology. blockchain to offer decentralized finance (DeFi) solutions. While the idea and initial work on the project began in 2017, Solana was officially launched in March 2020, by the Solana Foundation based in Geneva, Switzerland.
Solana's protocol is designed to facilitate the creation of decentralized applications (DApp). It aims to improve scalability by introducing proof-of-history (PoH) consensus, combined with the underlying blockchain proof-of-stake (PoS) consensus.
Due to the innovative hybrid consensus model, Solana enjoys interest from both small and institutional traders. A key focus for the Solana Foundation is making decentralized finance accessible on a larger scale.
Network outages weigh on SOL token price
It is important to note that the Solana blockchain is prone to network outages. During March and April 2022, Solana experienced nine outages, seven of which were deemed "major". A status update on Solana's website on May 26 showed that the blockchain had lagged “approximately 30 minutes behind wall clocks, due to longer-than-usual lock times. While this has no impact on performance or network operations, the time reported by block explorers and dapps may not reflect clock time.”
While the delay did not affect the operation of the blockchain, it could have an impact on annual wagering rewards. Solana pays out rewards to punters each season, which has 432.000 blocks. Based on Solana's projected block time of 400 milliseconds, there should be 182 epochs in a year, but longer block times would reduce the number of epochs, leading to reduced gains.
The SOL/USD price dropped in response to the update, from $47,98 on May 25th to $43,49 on May 26th and $40,98 on May 27th. The price chart shows that SOL dipped below $50 on May 11, as cryptocurrency markets took the brunt of the meltdown of Terra UST and LUNA tokens and the US Dollar (DXY) index hit a high of 20 years.
The most recent blockchain outage took place on June 1, 2022, lasting over four and a half hours, according to Solana's status. It was the first outage last month, with the previous outage taking place on May 1, 2022. The SOL token dropped from $45 on June 1 to $38,43 on June 2. Since then, SOL has been trying to stabilize around the $40 mark. The coin has fallen sharply since its November high, when it hit a record $260,06 on Nov. SUN currency. Could the price of the SOL token return above $6 in the short term or is there room for more downsides?
Solana Price Forecast: What is the outlook for 2022-2030?
Technical analysis for SOL currencies was bearish at the time of writing, with 20 indicators showing bearish signals compared to 8 bullish signals. The Stochastic Relative Strength Index (RSI) and the Hull Moving Average showed sell signals, while most oscillators such as the RSI, Average Directional Index and Moving Average Convergence Divergence (MACD) remained neutral. Analysts’ price forecast for the SOL token indicated that the coin could drop 7,58% to $36,40 by July 2.
The most optimistic analysts had a more encouraging short-term forecast for Solana for 2022. Forecasts showed that the coin could trade at $42.00 by the end of the year. Based on historical numbers, crypto analysts have indicated that the price could reach $56,04 in 2023, rising to $61,93 in 2024, $75,48 in 2025, and $180,21 in 2030.
More conservative SOL currency price predictions expect a slower upward trajectory. The projection showed that the coin could drop to $33,39 by the end of 2023, then rise to $52,59 by the end of 2025 and $77,89 by the end of 2030.
When analyzing predictions for the future price of the SOL coin, it is important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours and even more difficult to come up with a long price. term target. As such, analysts and algorithm-based forecasters can get their predictions wrong.
Having said that, before making any investments, do your research, investing in cryptocurrencies is highly risky and speculative, and this article is not a writer's recommendation to invest in cryptocurrencies.
Where to buy the SOL token?
SOL cryptocurrency can be traded on the following exchanges:
- Binance
- OK
- bybit
- MEXC
Conclusion
In very volatile cryptocurrency markets, it is important to do your own research to determine if it is a good fit for your investment portfolio. Whether the SOL token is a suitable investment for you depends on your risk tolerance and how much you intend to invest. Always do your own research. And never invest money you can't afford to lose.
FAQ
Will the SOL currency go up or down?
At the time of writing (June 27), most algorithm-based analysts project that the SOL price could increase in the future. However, predictions can be wrong. Forecasts should not be used as a substitute for your own research. Always conduct your own due diligence before investing.
Why is the price of the SOL currency increasing/decreasing?
The price of the SOL token has been falling as cryptocurrency markets have turned bearish and the Solana blockchain faces ongoing technical issues.
What is the SOL coin for?
The SOL token is the native cryptocurrency of the Solana blockchain, which aims to offer a faster and cheaper smart contract platform than Ethereum.
