Solana (CRYPTO: SOL), a smart-contract-enabled blockchain termed “Ethereum Killer,” was trading up about 1.5% at one point on Wednesday.
Solana, although less secure than the Ethereum (CRYPTO: ETH) network, has many characteristics that could help it leave Ethereum in the dust:
- Block Capabilities: Solana has a block time of just 0.04 seconds and a block size of 20,000 transactions, compared to Ethereum with a block time of 13 seconds and a block size of 70 transactions.
- Gas Fees: Solana is far less expensive with a transaction fee of just $0.00025, compared to Ethereum which charges an average of $3 to $10 per transaction but can charge upwards of $100.
See Also: Best Cryptocurrencies on Solana
The Solana Chart: Solana is trading down about 38% from its Sept. 9 all-time high of $216, and since Sept. 18 has been pushed down by a descending trendline. The trendline, paired with a key level of support at $124.18 that the crypto has held above, has formed into a descending triangle on the daily chart.
Solana will meet the apex of the triangle on Oct. 2 and when Solana breaks up or down from the pattern traders will want to watch for big volume to come in to signal the pattern was recognized. The crypto has made two attempts, on Monday and Wednesday, to break bullishly from the triangle but has failed and formed candles on both days with large upper wicks.
Solana is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The crypto is trading about 150% above the 200-day simple moving average, however, which indicates overall sentiment is bullish.
- Bulls want to see big bullish volume break Solana up from the descending triangle, which would allow it to regain the eight and 21-day EMAs as support. The crypto has resistance above at $150 and $169.
- Bears want to see big bearish volume come in to the crypto to break it down from the key support level. If Solana loses the level as support it could retrace to $124.