Solana SOL/USD has weakened from the record highs above $58, registered on 18th May, below $20, and the current price stands around $29. Solana could weaken even more in July 2021, the critical support level stands at $25, and if the price breaks it, the next price target could be around $20 or even $15.

Fundamental analysis: Solana will launch an incubation studio to accelerate the development of decentralized applications

Solana is one the most performant blockchain in the world that is designed to keep fees low for applications with billions of users. The average fee per transaction is around $0.00025, and in the last several months, this project has attracted tens of thousands of developers to its network.

According to its official website, Solana can process 50k transactions per second and offers developers confidence by delivering predictable scaling without compromising security or composability. Solana cannot exist without validators, and by processing transactions, each validator helps to make the Solana network even better.

Anyone can run a validator node and earn SOL for helping secure the Solana network. Validators also help increase censorship resistance on the network by increasing decentralization, and it is important to mention that Solana has its foundation program to incentivize new validators to the network.

This month, Solana reported that it had completed a private token sale of $314,159,265, and with the new resources, Solana will launch an incubation studio to accelerate the development of decentralized applications.

“After seeing explosive growth in global developer uptake, we are convinced that scalability and throughput in blockchain are now a solved problem. The next phase is onboarding a billion users,” said Anatoly Yakovenko, Solana Labs Co-Founder and CEO.

Olaf Carlson-Wee said that Solana is a next-generation blockchain that can meet the high bar and massively scale the DeFi ecosystem.

“In our view, Solana is a compliment to Ethereum, and we’re thrilled to see strong developer activity and a continually expanding community grow around the project,” said Olaf Carlson-Wee, Managing Partner of Polychain Capital.

Faster transactions and lower fees fuel Solana’s (SOL) adoption in the market, and it is important to mention that lots of popular dApps and platforms are powered by Solana;  Audius, Mango Markets, Maps.me, Pyth Network, Phantom, USDC, Serum, Raydium, Bonfida, KIN, and many more.

Technical analysis: The risk of further declines is probably not over

The cryptocurrency market remains under pressure, and probably it is not the best moment to invest in Solana (SOL). The risk of further decline is still not over, and it may take a long time for prices to see any bigger recovery.

Data source: tradingview.com

The critical support level stands at $25, and if the price breaks it, the next price target could be around $20 or even $15.

Summary

Solana (SOL) has weakened from the record highs above $58, registered in May 2021, and the risk of further decline still persists. If the price falls below $25 support, the next price target could be around $20 or even below.

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