SOL after climbing to 4th place risk of correction: report
At the time of writing, the net worth of the total number of SOL tokens in circulation is over $ 76 billion, just behind BNB’s $ 110 billion, ETH’s $ 541 billion, and $ 1.17 trillion US dollars back from Bitcoin.
Top 10 cryptocurrencies by market capitalization | Source: Messari
Meanwhile, ADA and USDT’s market cap is $ 67.05 billion and $ 74.39 billion, respectively.
$ 100 Million Fund Launch Boosts SOL. bullish outlook
Solana’s market capitalization soared as SOL hit a new record high. On November 7th, the price crossed the $ 262 mark for the first time in history, largely due to a positive market-wide move with other top cryptocurrencies posting similar gains.
In the meantime, SOL has received more positive signals from Solana, which is developing Web3 games through its venture capital arm. The company, called Solana Ventures, announced on Friday that it will partner with FTX and Lightspeed Venture Partners to invest $ 100 million in technology and game studios.
Solana Ventures’ goal is to attract desktop and mobile video game developers to build their projects on this public blockchain platform, increasing the prospect of SOL adoption. A similar reception boom in 2021 caused the price of SOL to jump nearly 17,500% year over year, from $ 1.51 to $ 262.45.
Solana ecosystem | Source: Solanians Telegram Channel
The upward trend is intensifying as speculators begin to see Solana as one of the toughest rivals to Ethereum, the leading smart contract platform grappling with rising gas fees and network congestion issues.
For example, Solana claims to be able to process 50,000-60,000 transactions per second (tps) with an average transaction fee of $ 0.00025. Meanwhile, Ethereum trades between 15 and 30 tps with average fees ranging from $ 4 to $ 21.
Compare Smart Contract Platforms | Source: Solwealth
Paul Veradittakit, a partner at Pantera Capital, named Solana a “top competitor” to Ethereum, Cardano and other smart contract platforms in terms of “development dynamics and adoption”.
However, Solana also showed signs of resource depletion such as lack of prioritization on SOL transactions and a lower number of validators, which resulted in an 18-hour network outage in September Solana Network.
Adjusted risk for SOL. Price
Although the recent rally catapults the course to all-time highs, the SOL is threatened with a correction due to at least 2 declining indicators.
First, price formed a rising wedge, a technical pattern that often leads to lower lows. Second, the SOL has also confirmed a bearish divergence between bullish and bearish impulses (confirmed by a lower low in the daily relative strength index).
Daily SOL price chart with rising wedge and divergence of price impulses | Source: TradingView
Breaking the lower trend line of the wedge and increasing volume would risk the SOL sinking much deeper, equal to the maximum height. With that, the target for a crash is almost between $ 205 and $ 91.52, depending on where a bearish breakout begins.
You can see the price SOL Here.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Cointelegraph