- Solana price has formed a bearish pennant pattern.
- Magic Eden NFT marketplace has seen strong demand.
- SOL will likely have a major bearish breakout.
Solana price has remained in a tight range in the past few days as Bitcoin has consolidated above $19,000. The SOL token is trading at $32.88, which is about 6% above the lowest level last week. Its market cap has crashed to about $11.3 billion, significantly lower than its all-time high of over $70 billion.
Magic Eden strength continues
Solana is a leading smart contract platform that is seen as a leading competitor to Ethereum. It is a proof-of-authority platform that uses Verifiable Delay Function (VDF) that takes a number of steps to evaluate but provides a unique result that can be verified publicly.
Solana is known for its high throughput since it can be handle thousands of transactions per second (tps). It is also a highly safe platform that is widely used to develop all types of applications. According to its website, Solana has handled over 82.3 billion transactions. Its average cost per transaction is $0.00025.
Unlike other chains, Solana has been used to build applications that are used widely around the world. The most popular of them is Brave, a browser that is used by more than 50 million people every month. Solana was also used to build StepN, the fast-growing move-to-earn platform.
Most recently, Solana was used to create Magic Eden, the fast-growing non-fungible token (NFT) marketplace. Magic Eden recently raised $130 million from investors, giving it a market cap of over $1.6 billion.
Magic Eden has become a leading competitor to OpenSea. According to DappRadar, the total transaction volume of the platform has risen to over $1.6 billion. The number of traders in the ecosystem has surged to over 807k.
Still, like other smart contract platforms like Cardano and Ethereum, the biggest concern among investors is that the volume of DeFi and NFTs has declined. Solana’s DeFi applications have a total value locked of less than $3 billion. Solend, one of its DeFi platforms has gone through a liquidity crisis.
Solana price prediction
The 4H chart shows that the SOL price has been moving sideways in the past few days. The coin remains along the 25-day and 50-day moving averages. It is also significantly below last week’s high of $43.05. Also, like Safemoon, Solana has formed a bearish pennant pattern while the Relative Strength Index (RSI) has moved to the neutral point at 50.
Therefore, there is a high probability that Solana will have a bearish breakout in July. If this happens, the next key support to watch will be at $26.15, which is about 22% below the current level.
