It is a proof-of-stake platform built by Solana Labs, an organization that has raised $335 millions from investors, whose eponymous native token is traded under the ticker SOL. The coin is used to secure the network and reward validators. It has a supply limit of 508 million coins while those currently in circulation are slightly above 319 million. Therefore, with Solana currently trading at $102, it has a market cap of about $32 billion, making it the eighth biggest coin in the world.
Solana has been used widely by developers who have built DeFi, NFT, gaming, and metaverse apps using its platform. According to DeFi Llama, there are about 55 apps built using Solana that have a total value locked (TVL) of $8 billion. That makes it the sixth biggest platform after Ethereum, Terra, Binance, Avalanche, and Fantom.
Solana (SOL) price history & technical analysis
For a long time, Solana was a little known coin whose price remained below $5. That changed in 2021 when it started gaining traction. Between January and November 2021, the coin jumped by over 12,000%, propelling it into the top ten of the biggest coins in the world. Since then, it has declined by about 61%.
On the daily chart, the coin has been in a strong bearish trend in the past few months. The sell-off accelerated when it moved below the key support at $115.91, which was the lowest level on September 22. It has moved below the 25-day and 50-day moving averages. The coin formed a death cross on 1st February.
Most importantly, Solana formed a head and shoulders pattern. Therefore, there is a likelihood that it will keep falling as bears target the key support at about $50. This view will be invalid if the coin rises above the key resistance at $140.
Solana (SOL) Price Prediction for a Year
There will be several catalysts for the SOL price in 2022. First, the Fed and most central banks are expected to be hawkish this year. Like tech stocks, cryptocurrencies usually react negatively to high rates. Second, unlike last year, there will be no stimulus checks this year.
Further, analysts expect that most regulators will add more guidelines this year. Regulations will be a good thing because they will likely push more institutional investors to the platforms. Another catalyst will be the growth of its ecosystem.
From a technical perspective, we have seen that the coin has formed a head and shoulders pattern. Therefore, there is a likelihood that the coin will drop further in 2022.
According to Long Forecast, Solana will continue dropping in 2022 and end the year at around $76. On the other hand, Digital Coin Price estimates that the coin will end the year at about $132. They expect that it will rise to a high of $150 in June.
Solana Price Prediction for 2025
Solana has been in a growth phase in the past few years as the number of developers embracing the network rise. While the network has had some bugs, it remains a popular option among developers. Users also love it as evidenced by the rising transaction count.
Therefore, there is a possibility that Solana will be higher than where it is in 2025. Digital Coin Price estimates that the coin will be trading at $214 in December 2025. That will be in the same range where it will have started the year at and substantially higher than where it is today.
Meanwhile, another estimate by Coin Price Forecast shows that the coin will soar to about $277 in 2025. If that happens, it will be about 175% above its current price.
Solana in Questions & Answers
Is Solana real?
Yes. Solana is real. It is a popular project that has raised millions of dollars from investors and is gaining popularity among developers.
Will Solana reach $1,000?
Yes but it will not be a smooth path. Like we have seen below, cryptocurrencies tend to have their ups and downs. Therefore, there is a possibility that it will keep rising and hit $1,000 in the coming years.
Should I buy Solana Coin?
Not yet. While Solana is a good cryptocurrency, technicals suggest that the coin will keep dropping in the coming months. So, it is good that you wait until a new bullish trend is confirmed.
How much will be Solana be in five years?
Solana is a leading platform that is a viable alternative to Ethereum. Therefore, there is a possibility that its price will be at least 2x where it is today.
Where do I buy Solana Coin?
Solana is a popular cryptocurrency, meaning that it is widely offered by leading exchanges like Kraken, Binance, and Coinbase. Another option is to buy Solana contracts for difference (CFD), using popular forex brokers. Additionally, you can purchase it in decentralized exchanges like Uniswap and PancakeSwap.
The views expressed in this article are those of the author. He and the company will not be held accountable for any losses.
