Solana (SOL) is currently experiencing a corrective phase, retracing gains made around the $25 resistance level. The price of SOL could potentially see further downside if it breaches the crucial support at $21. After a period of steady growth, Solana faced resistance at the $25 mark, reaching a high of $24.77 before initiating a fresh decline.
Nevertheless, the bulls are actively defending the $21.00 support level, which aligns closely with the 61.8% Fibonacci retracement of the recent upward movement from the swing low at $18.75 to the high at $24.77.
On the bullish side, immediate resistance can be observed near the $22.00 level and a corresponding trend line. A decisive move above the $22.50 resistance could propel the price toward the $23.50 resistance.
However, if SOL struggles to recover, it might continue its descent. The primary support lies at around $20.30, and a close below the critical $20.00 support could expose the coin to further downward movement, potentially targeting the $18.80 support in the near term.
Ethereum vs. Solana: A Comparison
While shifting our focus to the development and positioning of Solana in the cryptocurrency landscape, a notable crypto venture capital firm has drawn an interesting analogy.
They compare Ethereum (ETH) to the mobile operating system Android and Solana (SOL) to iOS, drawing parallels between the two blockchain platforms and the popular mobile operating systems.
Ethereum is likened to Android due to its modularity, functioning on a multitude of devices from various manufacturers, similar to the way Android dominates the mobile OS market with a 60-75% market share. This modularity benefits hardware companies but also challenges app developers, owing to the diversity of devices.
On the other hand, Solana is equated to iOS because of its emphasis on tightly integrated components, prioritizing throughput and performance. While both platforms have unique strengths and weaknesses, Solana’s unified network is faster and more cost-effective than Ethereum and other Ethereum Virtual Machine (EVM) networks.
This gives developers the advantage of focusing on delivering high-quality apps without the concerns of transaction speed, gas cost optimization, or deployment across multiple networks.
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