What is Solana?
Solana is a layer 1 blockchain that uses a combination of Proof of History and Proof of Stake consensus mechanisms to resolve thousands of transactions per second at a low cost. Solana is the world's first web-scale blockchain designed for broad use in payments, NFTs, gaming and many other use cases.
Solana was founded in 2017 and officially launched in 2020. It aims to solve the blockchain dilemma (impossible triangle) - a painful problem encountered by Bitcoin or Ethereum at the time. Solana deploys two consensus mechanisms at the same time: historical proof and stake proof to increase the expansion and transaction processing speed to 65,000 TPS, with a fee of only 0.00025 mg. From this point of view, Solana is considered to be a high-performance blockchain that can replace Ethereum in the future, and is recognized by the crypto community as a new generation of "Ethereum killer".
In addition, Solana also provides a strong infrastructure including SDK and smart contract toolkits, creating favorable conditions for developers to build DApps on the ecosystem. Due to the ability to process transactions quickly and at low cost, DeFi, NFT and Gaming projects on Solana have always received the most attention.
Solana Technology
History proves:
Proof of History (POH) is a consensus mechanism that makes a synchronized time chain to verify transactions quickly and efficiently. In addition, PoH can also be regarded as a chain calculation that can provide a cryptographic verification (code) of the time elapsed between two transaction events. The cryptography is the SHA-256 hash function (Sequential Hash Verifiable Delay Function - abbreviated as VDF) used in Bitcoin.
However, Solana does not use VDFs to achieve randomness like Bitcoin does. Each validator node in the network has its own VDF, and when a transaction is sent to the network, the node will begin running its own VDF. The node will then continue to run its VDF until a verifiable output is produced.
The Solana Ecosystem
Solana's ecosystem is extremely diverse and outstanding, with many projects in different fields, such as: DEX, Liquid Staking, Restake, Games/NFT, Memecoin, DePIN, etc.
Token Economy
Token Allocation
Seed sales: 16.23%
Initial sale: 12.92%
Validator sales: 5.18%
Strategic sales: 1.88%
Coinlist Auction: 1.64%
Team: 12.79%
Solana Foundation: 10.46%
Social: 38.89%
SOL Token Distribution Schedule
Development team and investors
Notable members of the Solana development team include:
Anatoly Yakovenko: He is the co-founder and CEO of Solana.
Greg Fitzgerald: He is the co-founder and CTO of Solana.
Raj Gokal: He is the co-founder and COO of Solana.
Solana has successfully raised 334.15 million Mg through 2 rounds of financing, including Series A (20 million Mg) and private token sales (314.15 million Mg). Solana's investors include: a16z, Polychain Capital, Multicoin Capital, etc.
In the past 48 hours, the market has experienced severe volatility, causing both the Bitcoin and altcoin markets to be in an unstable state. Solana was particularly affected by the volatility, with a large number of liquidation events occurring, exacerbating the fierce battle between buyers and sellers. At the same time, Solana's various on-chain indicators showed bearish signals, indicating that the shorts were strong.
Where will the SOL price go next?
Solana is currently forming a bearish descending triangle pattern, which will get confirmed if the price breaks out and closes below $118. However, the bulls strongly defend the decline below the direct Fib channel. As of the time of writing, the SOL price is $142.89.
Where Will Solana (SOL) Price Move Next?
Currently, Solana is in the midst of forming a bearish descending triangle pattern. This pattern will be confirmed if the price breaks out and closes below $118. However, the bulls are currently strongly defending the possibility of a break below the direct Fib channel.
A positive sign for the bulls is that the RSI is showing a possible positive divergence, which suggests that the selling pressure may be easing. If the bulls can push the price above the 20-day EMA (exponential moving average), the SOL/USDT pair could rally to the 50-day SMA (simple moving average, around $153) and then approach the downtrend line.
Once this trendline is broken, the price is likely to retest the $188 level. Conversely, if the price turns down from the 20-day EMA and breaks below $118, it will consolidate the bearish setup. In such a case, the pair could decline further to around $80.
The strong rebound from $121 showed that the bulls are aggressively defending the support at $118. If the price rebounds off the current levels and climbs further above $150, it is likely to trigger an increase in buying demand.
