The Solana (SOL) price has decreased since October 2, when it reached a high of $24.79.
On October 12, the price of Solana reached a low of $21.79, invalidating a large portion of its September gains.
Interest In Solana Reaches Yearly Peak
The Total Value Locked (TVL) in the Solana network recently reached a new yearly high of $337.49 million. This is very interesting since the price is far from its yearly high.
Speaking to BeInCrypto, Julian Deschler, the Co-founder of Elusiv, discussed some of the reasons for the Solana TVL increase, also chiming in on why new developers are building in the blockchain.
Elusiv is a universal encryption layer for Web3 powering the decentralized world. It went live on the Solana Mainnet in March 2023, following a $3.5 million seed round in November.
Elusiv recently unveiled a feature that enables users to exchange assets on the Solana blockchain privately.
The innovative aspect lies in using zero-knowledge proofs to encrypt users’ public keys, thereby reducing counterparty risk. Within the Elusiv app, users are required to deposit funds into a private balance before sending or swapping tokens. This is all without exposing their public key.
This process involves using a temporary key, acting as a burner account. The temporary key effectively severs the link between a user’s public key and the source of the transactions.
Mr. Deschler believes that several factors contributed to the increased interest in the Solana blockchain, such as the Solana snap in Metamask, the introduction of Eclipse—an Ethereum L2 solution using Solana’s Virtual Machine (SVM), a successful hackathon in India, and Maker’s plans to create a Solana-based chain.
He also believes that Solana’s technical attributes make it an attractive choice for developers. Specifically, he pointed out that the high speed and low transaction costs made it the preferred choice for Elusiv.
Furthermore, Solana’s support for specific elliptic curves enhances Elusiv’s speed in sending and swapping assets privately.
The Solana Foundation is also critical in attracting new investments. Elusiv’s connection with Solana deepened during the “Riptide” global remote hackathon, where they received substantial support from the foundation.
This alignment with Solana exemplifies Elusiv’s strategic choice to operate within a blockchain ecosystem that not only accommodates its technical requirements but also nurtures innovation and growth.
SOL Price Prediction: When Will Decrease Come to an End?
The daily time frame analysis for the Solana price shows a breakout from a descending wedge pattern on September 15. The upward movement led to a high of $24.80 on October 2.
SOL has fallen since the high, a trend that mirrors that of the cryptocurrency market.
Even though there was a breakout, Solana failed to reach the $27 resistance area, which has stood since the beginning of the year.
The cryptocurrency trades above a long-term ascending support line, currently at $19.
Unlike the Solana TVL, the daily Relative Strength Index (RSI) turns bearish. When evaluating market conditions, traders use the RSI as a momentum indicator to determine if a market is overbought or oversold and to decide whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true.
The RSI is in the process of decreasing below 50 (red circle), a sign of a bearish trend.
If the altcoin continues decreasing, it can reach this descending resistance line, which is 12% below the current price.
Despite the bearish SOL price prediction, a strong bounce at the current level that would create a bullish daily candlestick can initiate a 25% increase towards the $27 horizontal resistance area.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Source: https://beincrypto.com/solana-sol-tvl-increases-despite-price-drop/