BlocksInform
Solana native token sol is in tears YTD. However, the token may be testing its support for rejection.
Recent chain events have contributed to the rise of Solana. But with rejection, is it possible to regain manhood?
Solana Keeps Things Aglow
The Solana ecosystem is touted as an “Ethereum killer” as it rose in prominence due to its low transaction fees and its capability to go through thousands of transactions per second.
Sam Bankman-Fried, former CEO of the now-defunct crypto exchange FTX, called the ecosystem “underrated” last year.
This connection with SBF and FTX led to both the ecosystem and the token to take a plunge, losing nearly half of its value.
SOL total market cap at $7.6 billion on the daily chart | Chart: TradingView.comFor this reason, the team behind the network has worked hard to stand out from FTX and Bankman-Fried.
The Messari overview which was commissioned by the Solana Foundation, detailed how things went down with regards the crypto exchange and its former big boss.
Photograph: BONK/Twitter.
But during the end of the year, SOL and other altcoins began to come together as the main cryptocurrencies such as Bitcoin and Ether went through critical resistances.
And with the release of BONK during the rally, the network usage of SOL shot upwards, adding on to the already solid trajectory that SOL has.
Source: Alchemy
Despite the fear, uncertainty, and doubt that plagued the ecosystem, Solana is still considered as a fast growing ecosystem, according to a recent report, which shows that the development on the network is increasing compared to its competitors.
1/ A new report by @ElectricCapital shows that Solana is the fastest growing developer ecosystem, surpassing 2,000 total developers in 2022. This is the second in gross figures only to ethereum.
Let's do some digging.https://t.co/HQvPbQzQD2 pic.twitter.com/xV6pnoT7db
— Solana (@solana) January 17, 2023
That definitely affected the price of SOL. When writing, floor trades at $20.63, up 30% in the last seven days.
Lineup of rejection and what that means.
During this time, the token was discarded at $25, which could mean that the bears will be able to test the two levels of support that helped SOL achieve its maximum price. In the coming days, the $18 and $16 supports were found to be rechecked.
SOL’s bullish pace in the weekly timeframe would certainly have an effect on the token’s ability to recover from the rejection.
Even though the $18 support is likely to be broken, Investors and traders can count on $16 as a springboard for retesting $25 over the next few days or weeks.
If $25 is broken, $30 should be the next target, as a breakthrough in this area would give ground bulls the flexibility to advance further.
SOL can rely on a solid ecosystem and a bullish community to recover lost ground.
Featured image by Sunshine Adult Day Care
