After crashing with the rest of the crypto space in May, Solana may have finally bottomed out from its hefty sell-off experience.
Is this an opportunity for longer-term crypto investors to get exposure to the Defi space at better prices?
Long-term Buying Opportunity on Solana?
Today, we’re looking at Solana, which is the native token for the Solana project, a platform used to create decentralized finance apps. It’s pretty unique in that it incorporates a hybrid consensus model of proof-of-history (PoH) and proof-of-stake (PoS), allowing for great scalability, quick validation times, and low fees. To learn more about the project, visit their official site at solana.com.
Because of these advantages, Solana not only caught fire with potential companies and users, but with investors as well as their native token, SOL, caught fire this year when it rallied from it’s consolidation area around $2.50 at the beginning of 2021 to a peak just shy of the $59 handle before the great crypto crash in May.
On the daily chart above of SOL/USD, we can see that Solana finally found support against the Greenback around the $20 handle, almost 70% off of its all-time high. And it looks like now that the risk of a mass crypto liquidation is low at the moment, the market seems to be in a bottoming out phase, and potentially into a recovery phase in the short-term.
With the Solana project rapidly growing its ecosystem, and big money coming in to invest (5 New Funds Bring $100M to Boost Growth of the Solana Ecosystem), this dip may be a buying opportunity in what could be a lasting project in the crypto space.
But with prices still hovering around its crypto crash lows, the conviction still seems to be low that bullish sentiment is coming back. If we see sustained prices back above the $40 handle, that could draw in enough buyers back in to get the market moving back into its longer-term trend higher.
There may be a catalyst coming soon for that scenario as the Solana token will soon be fully tradable at Coinbase, giving U.S. investors the chance to trade it for the first time and bring fresh cash into the project.
What do you all think? Is the bull run now over for Solana or is the beginning of a new leg higher? Or are we heading into a choppy phase ahead? Let me know in the comments section below!