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Solana Blockchain Is Considered an Ethereum Killer
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Solana’s SOL has returned 19% in a week
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The cryptocurrency is about to break a resistance zone
Solana SOL/USD has made a massive return of 19% in the last week. At the time of writing, the cryptocurrency is up 5% in the past 24 hours. SOL is now trading at the $42 resistance level but the bulls are likely to win.
The Solana blockchain is often referred to as the Ethereum killer. The name derives from its similarity to Ethereum. Blockchain offers faster transaction speeds and is less expensive than Ethereum. For this reason, investors believed that Solana was a true rival to Ethereum.
However, a series of adventures has raised doubts about Solana’s ability. Bears exploited with crypto sentiment, SOL token touched lows below $30. This compares to an all-time high of $260 in November 2021 at the height of the crypto boom. SOL is still showing that it may reclaim higher levels in the form of a sudden correction in crypto sentiment. We believe this week will be crucial for investors looking to add positions in the Solana token.
SOL trades at resistance with potential for breakout
Source – TradingView
The established resistance of SOL is at $42. This is at the same level as the current price, which suggests that a breakout could occur.
A break above the $42 resistance level is forming a bull run for SOL. The price is likely to move higher to find the next resistance, which is established at $58. Still, we need to look at the crypto sentiment to ascertain the viability of $58. However, a breakout would make $42 a reference support for SOL.
If SOL fails to break the previous level of $42, it could potentially move back towards $32. Nevertheless, with the sudden correction in cryptocurrency sentiment, there is a high probability that SOL will break the resistance. We need to see how it turns out this week.
summary
SOL is bullish at the $42 resistance level. Investors should keep an eye on potential breakouts. The next resistance to watch is $58.