Bulls Got Rejected at $125; Will They Bounce Back?

The implementation of a fault-tolerant replicated state machine is what Blockchain is all about. However, presently available blockchains do not rely on time, or make a weak assumption about the participants’ abilities to keep time. 

Instead, each node in the network usually relies on its local clock without knowing about any other participants’ clocks in the network. Because of the lack of a trusted source of time, there is no guarantee that every participating member will make the same choice when a message timestamp is used to accept or reject a message. 

Solana’s new architecture for a high-performance blockchain

To address the above issue, Solana’s Proof of History (PoH) is designed to create a ledger with verifiable passage of time, which includes the duration between events and message ordering. It is expected that every node in the network will be able to rely on the recorded passage of time in the ledger without having to trust anyone.

Solana has been very popular lately among crypto experts.  Solana-based meme tokens such as BONK and WIF, which had seen a significant rise earlier this month, are down by more than 50% from their all-time highs in December, indicating profit-taking and a decrease in interest in participating in the frenzy. 

Technical Analysis & Prediction of SOL Coin Price 

The Solana Coin (SOL) experienced a drop of nearly 6% in the last 24 hours to reach $98, indicating a slowdown in the ecosystem frenzy and the rally of Solana-based meme coins from the previous weeks. The decline has caused SOL to pull back by over 20% from its highest price of $125 on Monday, which it had not seen since April 2022.

The Sol coin price has risen more than 9% in 24 hours, regaining the fourth spot in the crypto ranking, displacing BNB from that position. Solana had a phenomenal year in 2023 as it rose more than 900%. 

At press time, the SOL coin price is experiencing a short-term pullback. The rally showed signs of overheating due to elevated fund rates for derivatives positions, according to David Shuttleworth, research partner at Anagram.

Currently, SOL has slightly recovered and is trading at the level of 107. Over the last three days, the coin has been falling substantially. The immediate support level for the bulls is at $79.8. Meanwhile, the resistance level at which the bears are present will be at $125. The price prediction for the SOL coin price is bullish as the trend is still positive.

Conclusion

Solana is developing a new architecture to address a major issue in the current blockchain. Solana’s Proof of History (PoH) is designed to create a ledger with verifiable passage of time. The price prediction as per the current trend is bullish for the SOL coin.

Technical Levels

• Support Levels: $79.8 and $51.8.
• Resistance Levels: $125 and $199.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.