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Solana Blockchain Known As Ethereum Killer, But Frequent Hacking Is A Concern
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Local Token SOL $35.5 . has remained stable on
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Price recovery will be determined by overall crypto sentiment
Solana SOL/USD was trading back to a mid-June low of $26. The coin is trading at $35.5, but the price seems to have stabilized during the market correction. SOL is at the same price level since last 5 days. The coin has a monthly high of $47.
Solana was one of the most watched blockchains in 2021. Due to its low transaction fees and fast transactions, the blockchain was known as a true Ethereum killer. Investors looking for cheaper alternatives to Ethereum always turned to Solana.
While SOL remains stable at $35.5, several fundamentals are likely to continue to take control. There is a general crypto sentiment. The cryptocurrency remains mixed, with a correction followed by a short-term appreciation. This is clear for SOL as the price has corrected after tapping $47.
Another major concern for SOL is its own ecosystem. The blockchain has been hacked time and again, which has kept SOL in check. Investors are concerned that SOL may not be a true competitor to Ethereum. Ethereum is moving to a proof-of-stake consensus mechanism that will provide more competition.
SOL remains strong at $35.5 level for potential upside
Source – Tradingview
On August 17th, a bear market was welcomed when the SOL broke below the ascending triangle. However, bears weakness remains at $35.5. The momentum indicator is in bear territory as indecision extends towards the $35.5 level.
closing thoughts
Although the SOL is bearish, $35.5 could be a turning point if stability increases. A bullish reversal will see SOL return to the $42 resistance level.