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Solana blockchain has been touted as an Ethereum killer, but frequent hacks are a concern
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The native token SOL has been stable at $35.5
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Price recovery will be determined by the overall crypto sentiment
Solana SOL/USD was trading back to the $26 bottom that was hit in mid-June. The token trades at $35.5, but the price seems to have stabilized in a market correction. SOL has been at the same price level for the last 5 days. The token’s monthly high is at $47.
Solana was one of the most highly watched blockchains in 2021. Owing to its low transaction fees and faster transactions, the blockchain was touted as a true Ethereum killer. Investors looking for a cheaper alternative to Ethereum always moved to Solana.
While SOL remains stable at $35.5, several fundamentals could continue to keep it in check. One is the general crypto sentiment. The cryptocurrencies remain mixed, and short-term appreciations are followed by a correction. That is evident for SOL as the price has been on a correction after tapping $47.
Another major concern for SOL is its own ecosystem. The blockchain has been hit by frequent hacks, which has kept SOL subdued. Investors are growing concerned that SOL may not be a true competitor of Ethereum. Ethereum is shifting to the Proof-of-Stake consensus mechanism that will offer more competition.
SOL remains strong at the $35.5 level for a potential bullish surge
Source – TradingvIEW
A bear market was welcomed when SOL broke below the ascending triangle on August 17. However, the bear weakness has been contained at $35.5. The momentum indicator is in the bear zone as indecision grows at the $35.5 level.
Concluding thoughts
Although SOL is bearish, $35.5 could be the turning point as stability grows. A bullish reversal will see SOL revert to the $42 resistance.