Is Solana Centralized? What Does This Mean for the Future of SOL Price, Tech Expert Weighs in
The recent market decline has impacted SOL price and potentially halted the anticipated bull pennant breakout. Despite this, the pattern remains valid, and with a bit more consolidation between $130 and $161, a breakout remains feasible. However, at the Token2049 conference, former NSA intelligence officer Edward Snowden expressed concerns about Solana’s centralization, suggesting that it may be suitable only for meme coins and scams.
Snowden Stance On Solana
Snowden highlighted the centralization of Solana and its potential risks, emphasizing that while the network offers fast speeds and low transaction costs, investing real value in the chain could be precarious due to its centralized nature. This issue of centralization has been a recurring problem for Solana, as it contradicts the fundamental principles of blockchain technology. Additionally, accusations of inflated transaction numbers have positively impacted SOL price.
Read Also: Shiba Inu Community Incinerates Over 237M SHIB Tokens In September
Despite these criticisms, Solana has demonstrated resilience in the face of adversity. For example, following initial centralization claims, SOL price experienced a temporary decline but swiftly rebounded as attention shifted to its robust ecosystem growth. Furthermore, the rejection of the Solana ETF by VanEck and 21 Shares has bolstered Solana’s credibility as a leading blockchain platform.
Market Trends and Performance
Looking ahead, the SOL price chart indicates a bullish setup, potentially propelling the price to surpass $500. Currently trading at $141.64, the SOL price sits near the 38.2% Fibonacci retracement level, a significant pivot point for continuation or reversal. The 50% Fibonacci retracement at $115 serves as strong support, with the next major resistance near the 23.6% Fib retracement close to $164.
The chart suggests bullish momentum, with potential higher price levels targeting $225 (first major resistance) and beyond $325. However, a failure to sustain above the 0.5 Fibonacci retracement level may indicate crypto market weakness, potentially leading to lower prices, with SOL finding support around $85 or $61.
Read Also: LUNC Price Could Surge to $1, even $5 Following Binance’s Token Burn, Analyst Predicts
Follow us on Twitter, Facebook, Telegram, and Google News
Cryptolifedigital is a cryptocurrency blogger and analyst known for providing insightful analysis and commentary on the ever-changing digital currency landscape. With a keen eye for market trends and a deep understanding of blockchain technology, Cryptolifedigital helps readers navigate the complexities of the crypto world, making informed investment decisions. Whether you’re a seasoned investor or just starting out, Cryptolifedigital’s analysis offers valuable insights into the world of cryptocurrency.
