SOL price has been affected by the ongoing market decline and has potentially abandoned the anticipated bull pennant breakout. However, the pattern is still valid, and a little more consolidation between $130 and $161 should allow it to remain viable for a breakout. In the meantime, popular Wikileaks whistleblower Edward Snowden believes Solana is centralized, a tale he shared at the recently concluded Token2049.
Is Solana Being Centralized Bad for SOL Price?
Speaking at the Token2049 conference, Former NSA intelligence and government Edward Snowden said Solana was centralized and probably only good for meme coins and scams.
SNOWDEN: Solana is centralised
👊 😎 pic.twitter.com/MY6Di6sAPH
— Radar🚨 (@RadarHits) October 2, 2024
He noted that Solana is a case of a group of individuals taking advantage of a generational technological revolution for profit. While Solana provides convenience through its fast speeds and low transaction costs, Snowden pointed out that investing real value in the chain would be risky because of its centralized nature.
The issue of not being decentralized has always plagued the Solana blockchain. Generally speaking, centralization is generally not good for a cryptocurrency as it defeats the purpose of blockchain itself. Solana has been accused of inflating transaction numbers, which has had a positive impact on its SOL price.
Historically, Solana price has shown resilience despite criticisms. For instance, after the initial centralization claims emerged, the SOL price dipped but quickly bounced back as the market focus shifted to its undeniable ecosystem growth.
Moreover, the recently rejected Solana ETF filed by VanEck and 21 Shares contributed to improving Solana’s legitimacy as a top blockchain contender in the eyes of the public.
Solana Price Sets Eyes On $300 Despite Criticisms
Like in previous criticisms, Solana remains adamant to rise to new highs. The SOL price chart shows a bullish setup, which, if broken, could propel the price to over $500.
The Solana price is currently trading at $141.64, which sits around the 38.2% Fibonacci retracement level from its larger downtrend. This is a significant level, as it often acts as a pivot point for continuation or reversal.
The 50% Fibonacci retracement at $115 is holding as strong support, with the next major resistance above the 38.2% level at the 23.6% Fib retracement, close to $164.
The arrow on the chart points to potential higher price levels, suggesting bullish momentum is expected, possibly driving Solana toward $225 (first major resistance) and beyond $325.
Solana price prediction shows if the asset fails to sustain above the 0.5 Fibonacci retracement level, it may signal crypto market weakness, leading to lower prices. SOL may find support around $85 or $61 if the Solana price continues dropping.
Frequently Asked Questions (FAQs)
Edward Snowden described Solana as centralized and suggested it might only be suitable for meme coins and scams. He expressed concerns that a small group of individuals is capitalizing on the blockchain’s potential for profit, undermining the decentralized ethos of cryptocurrency.
Centralization contradicts the fundamental principles of blockchain technology, which promotes decentralization, security, and transparency. A centralized network can be more vulnerable to control by a few entities, raising concerns about manipulation and sustainability.
Investment decisions should be based on individual risk tolerance and market research. While some analysts see bullish potential for SOL, ongoing market volatility and concerns regarding centralization warrant careful consideration before investing.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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