Is Solana a good buy in January 2022?

By: Stanko Iliev
Stanko Iliev
Stanko dedicates himself to providing investors with relevant information they can use to make investment decisions. He loves the… read more.
on Jan 17, 2022
  • SOL has collapsed from its record highs
  • $120 represents current support
  • Solana has achieved carbon neutrality

Solana SOL/USD has collapsed from its record highs above $259, registered on 06th November, to $130, while the current price stands at $138.

Technically looking, SOL remains in a bear market, and the risk of further decline still persists.

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Designed to keep fees low

Solana is one the most performant blockchain in the world that aims to improve scalability by using a combination of proof of stake consensus.

Proof of stake consensus is also called proof of history, and it helps Solana to achieve high transaction speeds by keeping time between computers on a decentralized network without all the computers having to communicate about it and come to an agreement.

Solana is designed to keep fees low for applications with billions of users, and according to its official website, the average fee per transaction is approximately $0.00025.

Solana delivers predictable scaling without compromising security or composability, while new developers don’t need any experience with smart contracts or Rust to get started building on Solana.

The community of this project consists of developers, token holders, and validators, and it is important to say that Solana attracted tens of thousands of developers to its network in less than several months.

Solana has the fastest-growing ecosystem in the crypto space, with over 400 projects spanning DeFi, NFTs, Web3, and it is constantly working on new features to accelerate the development of decentralized applications.

Many popular dApps and platforms are powered by Solana, and the most popular ones include Serum, Audius, Raydium, Bonfida, Pyth Network, Phantom, USDC, KIN, Mango Markets, and Maps.me.

Solana’s aims to minimize already-low environmental impact, and the foundation of this project announced recently that the Solana blockchain had achieved carbon neutrality. Dan Albert, Executive Director of the Solana Foundation, said:

We’re dedicated to keeping the Solana ecosystem as environmentally friendly as possible. Our carbon neutrality initiatives, paired with Solana’s high-performance, energy-efficient design, means the community can build a sustainable web3 future for many years to come.

SOL remains in a bear market

Technically looking, Solana (SOL) remains in a bear market, and if you decide to buy this cryptocurrency in January 2022, you should use a “stop-loss” order because the risk remains high.

Data source: tradingview.com

The current support level stands at $120, and if the price falls below it, the next price target could be around $100 or even below.

The first resistance level stands at $160, and if the price jumps above this level, it would be a “buy” signal, and we have the open way to the $180.

Summary

Solana (SOL) is trading down more than 45% from its record highs registered in November 2021, and the risk of further decline still persists. The current support level stands at $120, and if the price falls below it, the next price target could be at $100 or even below.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

  1. Etoro, trusted by over 13m users worldwide. Register here >
  2. Capital.com, simple, easy to use and regulated. Register here >

*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.