Every day, massive headlines hit the cryptocurrency industry that many think will change the course of this technology forever. The latest example of this is news surrounding the Solana (SOL) blockchain.
Solana’s price is up significantly after Visa announced a new plan to use the SOL blockchain for USDC payments. As expected, there has been a lot of hype around SOL price recently, which is why we chose it as YouHodler’s “coin of the week.” We’ll dig into the details later but first, a little introduction.
Solana first came to being as a competitor to Ethereum. Software developer Anatoly Yakovenko believed he could make an innovative blockchain that worked similarly to Ethereum but with an improved consensus mechanism called “proof-of-history.”
Unlike proof-of-work or proof-of-stake, proof-of-history uses timestamps to locate and define the next block in Solana’s chain. With this difference, Solana can address two major issues of the Ethereum blockchain: scalability and security.
While Solana has not lived up to its “Ethereum killer” reputation just yet, its open-source platform is quickly attracting new decentralized apps (dApps) and transaction times are much faster and more affordable than competitors like Ethereum and Cardano.
Like the rest of the crypto market, Solana’s most recent massive peak came in 2021 during the last bull market. At that time, SOL reached an all-time high of nearly $260. Since then, SOL prices have seen sharp declines. In 2023, SOL’s price started to stabilize around the low to mid $20 range.
In July of 2023, SOL price broke out of a descending resistance line that was active for 609 days - potentially signaling a trend reversal. However, this reversal was short-lived and not nearly as extreme as some analysts thought. Currently, $27 is the line of significant resistance for SOL.
With the latest visa news, all eyes are on SOL’s price chart to see if this is the push it needs to achieve a bullish divergence.
SOL saw a 7% price increase following recent news from Visa stating the digital payment company has plans to use the Solana blockchain for its payment services. More specifically, it will do so to help scale its USDC stablecoin settlements.
This announcement comes just two weeks after Shopify integrated Solana into its platform for cryptocurrency payments - putting more eyes on traditional finance to the promising Solana blockchain.
Aside from price, the Solana-Visa news also saw a sharp rise in Total Value Locked (TVL) on the blockchain. More than $2 million was added in a matter of hours.
A rise in TVL means that user deposits are increasing - suggesting that there is more interest in the Solana blockchain. More interest, of course, means more users and more users means more buying pressure which could positively impact the price of SOL.
As stated before, analysts are keeping a close high on prices above $22. If SOL prices can move with conviction past $25 and $27, then that is bullish. On the other hand, a rejection from that resistance means SOL could go back below $20 to its low support level of around $18. If this happens, any bullish outlook will expire.
Regardless of what happens, trading SOL with MultiHODL opens up numerous opportunities in bullish and bearish directions. Multiply your SOL up to x70 and conduct technical analysis with integrated TradingView charts in Multi HODL.
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