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Introduction
Solana is an open source blockchain network that utilizes the proof of history combined with proof of stake consensus mechanism to improve upon the blockchain scalability. Solana blockchain is permissionless and open source that allow for the creation of decentralized applications DApps, Non-Fungible Tokens NFTs and Metaverse tokens. It is the project behind the SOL token.
Solana blockchain is an open source network that uses two consensus algorithm mechanisms in improving the scalability issues on the network. These two consensus mechanisms include the proof of history and proof of stake algorithm consensus mechanism. The Solana blockchain network helps users to create Dapps, NFTs and also metaverse tokens on the blockchain network. It is a permissionless network and it’s built behind the Solana token.
POS of the Solana network is used as a monitoring tool for PoH process as it validates each sequence of blocks produced by the PoH. The combination of these two mechanisms creates a unique phenomenon for the Solana network.
The proof of history (PoH) algorithm mechanism mainly targets the process of bulk transmissions on the blockchain network. The PoH also has the capability of working with millions of transactions per second. It does this with only 200 nodes distributed whilst the time of transaction for each transaction is determined. The Proof of Stake on the other hand is used in motoring the processes involved in PoH whereby each sequence of blocks produced by the PoH is validated. The combination and use of these two consensus algorithm mechanisms creates and develop a unique and outstanding network for the Solana project.
The Solana project was publicized in 2020 and was initialized by workers of Qualcomm. The leader for the team was Anatoly Yakovenko. Later, they came together and formed a team whereby they developed the Solana project with the headquarters in Geneva of Switzerland.
Exchange Platforms that Basic Attention Token can be traded on
Solana token can be traded on many different exchange platforms and they include Binance, gate.io, KuCoin, Bitstamp, Poloniex, Bitstamp, OKX, etc. I will be trading SOL with my Poloniex exchange account.
A total amount of $5 million was raised by the Block tackle web gaming to fund the development of the Solana NFT skateboarding game. After the announcement of this project the price of Solana started to bull in the market.
Solana token has a strong team that manages the blockchain network and it also allows the creation of DApps and games on the blockchain platform. These games and Dapps are really gaining more profits in the crypto space and this can really improve the price value of Solana in the market.
We know Solana token to be a volatile asset in the market and as such one can take a good advantage of scalp trading the asset in order to gain or earn profit.
Statistics of Solana
From the above screenshot taken, we can see that the price of SOL is at $97.69, with a circulating supply of 322,890,26.7 SOL, Market capitalization of $31,543,342,919, and also ranked at #9. This is according to coinmarketcap.com. Please it should be noted that I made my trade before writing this article and not on the same day of posting.
From the screenshot shown above, we can see the all time high price of the Solana token. SOL attained a all time high price of $260.06 and this was on November 06, 2021. It also attained a all time low at a price of $0.5052 and that was on May 11, 2020.
I am really optimistic about the SOL token because I belief that this token has a greater future and would rise again to surpass the all time high.
in this section, I would perform a real trade by utilizing the knowledge acquired from the steemit crypto academy community. I would be using two different indicators.
I performed scalp trading in this trade and for that matter I chose the 5 minutes timeframe after which I marked my support and resistance levels on the chart.
From the chart shown above, the price of the asset was rebounding to and FRO on the support trendline which was an indication of a trend continuation in the uptrend. Over here, I used the Moving Average crossing strategy where we saw that the 20 EMA (blue) crossed above the 50 EMA (red) line which indicates a bullish trend in the market.
Similarly, the RSI indicator was also used whereby we saw the RSI line crossed above the mid-point (50) and immediately I got that, I then marked my entry point.
In confirming my bullish signal, I then employed the Ichimoku cloud indicator to analyze that. From the chart shown above, we can clearly see that the price of the asset was trading above the Ichimoku cloud and the green color cloud started forming which then confirmed the entry position I took.
I executed my trade at $91.36 and set my take profit level at $91.43 and stop-loss was set at $90.53. My take profit was hit after some hours and I later sold my asset. Below are the details of my trade.
I am not going to hold this asset for long and this is because I decide to perform scalp trading for this asset. This indicates that I would exit the market whether my take-profit level is reached or whenever I feel like I have earned some profit on trade. SOL is a good crypto asset for traders to invest into as it is similar to the Ethereum Blockchain network. I do not intend to hold this asset for a long term but rather for a short term instead.
Solana as indicated is a project with a great and a promising Dapps, NFTs, quality features, and other valuable important features. The Solana is really a fast growing network as it’s also being influence by the rise and fall of BTC asset. Looking at this conditions, holding SOL token would produce a great return of profit.
Also when we had a look at the circulating supply of SOL network, we would realize that it is very low and this indicates that it has a long way to go in the future. As a matter of that, I would recommend everyone to buy and hold Solana tokens because it really has a promising future of growth.
I also recommend short term trader to also perform scalp trading on SOL token to earn profits.
There are different social media platforms that Solana can be found and they include Twitter, etc. This platform helps in spreading updates and news for the Solana project. A screenshot is shown below.
Similarly, the screenshot shown below indicates the official Website of the Solana Project Network. it provides the platform for users to create NFTs, and Dapps on the blockchain network.
Conclusion
I have traded SOLUSDT today and I wish to continue in the coming weeks. The trading is due to my personal analysis as well as the knowledge I attained from the professor's work.