Solana to $300? CIO Debunks FUD, Highlighting Burn Mechanism: SOL Price Analysis
Simon Chandler is a Brighton-based writer and journalist with over ten years of experience writing about crypto, technology, politics and culture. He has written for Cryptonews.com since late 2017,...
Solana has fallen by 1.5% in the past 24 hours, with the SOL price moving to $130 as Bitcoin gains by over 2% today and most other major alts suffer similar drops.
SOL has now lost 1% in a week and 8% in a month, although the cryptocurrency retains a healthy 580% gain in a year.
These percentages come after Cyber Capital founder and CIO Justin Bons posted a strong defence of Solana’s tokenomics, highlighting its burn mechanism and the fact that new issuance has been declining.
Such points bode well for the coin’s future, and with Solana remaining one of the biggest layer-one networks in the market, the SOL price certainly has a bright future.
Bons comments find SOL in an interesting position, with its indicators suggesting that a rebound may be coming for the altcoin.
For instance, its 30-period moving average (orange) fell below the 200-period average (blue) a couple of days ago, meaning that it’s now due to rise back towards the longer term average, bringing the coin’s price with it.
SOL’s relative strength index (purple) is also in a position to rise, having fallen to 20 on Monday and now hovering around 50.
The alt’s trading volume also suggests incoming interest, rising to $2.1 billion today after dropping below $1 billion over the weekend.
Indeed, Solana remains the most popular altcoin (after Ethereum) among institutional investors, as the latest CoinShares Digital Asset Fund Flows report shows.
And this fact chimes with Justin Bons’ remarks, with the founder arguing that SOL’s tokenomics are “a textbook example of what good
Read more on cryptonews.com
