Solana Becomes Prominent Platform for DePIN Projects: SOL Technical Analysis
The Decentralized Physical Infrastructure Network (DePIN) is harnessing decentralized networks driven by communities to enhance the efficiency and resilience of infrastructure, particularly in AI and data storage sectors. DePIN promotes a wide range of applications by incentivizing decentralized services, extending its benefits within and beyond the Web3 environment.
According to the Flipside report, Solana is regarded as the preferred platform for DePIN initiatives due to its ability to facilitate high-speed transactions, low costs, and robust infrastructure. The report highlights Garrison Yang, the chief strategy & marketing officer at io.net, who recognizes Solana as the fastest-growing ecosystem in the cryptocurrency landscape. Yang emphasizes that community engagement plays a vital role in DePIN projects, given their nature as decentralized hardware networks. Many projects, including io.net, are opting for Solana as a result.
Render Network, a leader in decentralized GPU rendering, offers scalable and cost-efficient computing power crucial for AI, media rendering, and scientific research. Since transitioning to the Solana blockchain in November 2023, the network has successfully rendered approximately 33 million frames, equivalent to about 33,000 GPU hours, using NVIDIA RTX 3090 GPUs.
The number of active node operators on Render Network reached a peak of 1,900 in January 2024, representing a 66.3% increase following the migration to Solana. This surge in participation is largely attributed to the growing recognition of Render’s capabilities and the supportive environment provided by Solana. Additionally, rewards for node operators have increased by 34.3%, reaching a high of 228,000 RNDR in early January 2024.
Render has also implemented a new mechanism called Burn and Mint Equilibrium (BME), which has stabilized the dynamics of RNDR supply and demand. Despite these positive developments, Render faces growing competition in the decentralized computing arena, which could impact its market position.
Helium Network, recognized as the world’s largest decentralized network, has experienced significant expansion, particularly in its mobile network segment. The predominance of token burns in Helium’s mobile network, surpassing those in its IoT network, highlights this growth. The rapid uptake of Helium Mobile services is driving this trend.
As of January 2024, the number of Helium Mobile subscribers reached a peak of nearly 90,000, driven by competitive pricing structures and incentives involving the MOBILE token. The Helium Mobile Discovery Rewards program has seen accelerated growth since December 2023, surpassing the rate of new subscriber acquisition. This surge is attributed to improved reward mechanisms and intensified efforts to combat fraudulent activities, ensuring genuine contributors receive ample rewards.
Helium has introduced new features such as Group Plans, Hex Boosting, and an international roaming option, significantly enhancing the appeal of Helium Mobile. The strategic partnership with Telefonica to expand coverage into Mexico further demonstrates Helium’s increasing influence in the sector.
While Helium remains prominent in decentralized connectivity, smaller projects are also making significant strides. WiFi Dabba provides affordable, high-speed internet access in India through a network of micro-ISPs, utilizing blockchain technology for payment systems. Pollen Mobile allows users to establish and manage their secure, private cell networks. Additionally, Uprock is developing a gamified peer-to-peer network where participants can store, access, and share data while earning rewards for their contributions to the ecosystem.
In terms of Solana’s technical analysis and forecast, the chart illustrates Solana’s performance against US Tether (SOLUSDT). The 30-minute frame showcases the fluctuating journey of Solana marked by the Exponential Moving Average (EMA) and the Relative Strength Index (RSI).
Currently, the 9-day EMA is positioned around $180.98, a critical point for traders. This level signifies an ongoing struggle between buyers and sellers, with Solana’s price hovering around this average. The EMA is particularly valuable for identifying short-term trends. At present, Solana’s slight position above the EMA suggests a minor bullish outlook in the near term.
Furthermore, the RSI, displayed in light purple on the graph, stands at 56.53. Positioned above the neutral mark of 50 but below the overbought line of 70, the RSI indicates that Solana maintains positive momentum, albeit not to the extent of being overbought. This status suggests there is still potential for upward price movement without the immediate risk of significant corrections associated with overvalued conditions.
Analyzing support and resistance levels, Solana has consistently found strong support around $176, where it stabilizes and rebounds following declines. Each time Solana’s price approaches this level, it attracts enough buying interest to halt further drops. This buyer engagement suggests traders and investors recognize value at this price point, driving the price upward again.
If Solana’s price dips below this initial support, it is expected to encounter another significant support at $172.00. Historical trading data reveals that this price level has often served as both support and resistance, highlighting its importance to market participants.
On the other hand, Solana faces minor resistance between $181.70 and $182.00, a range where upward momentum has repeatedly stalled. The price typically reaches this range, then retreats, reflecting selling pressure that limits further gains.
If Solana surpasses this initial resistance zone, it will face a subsequent obstacle at approximately $184.00. At this higher price level, selling activity could intensify as traders and investors seek to capitalize on profits, recognizing this as a historically challenging threshold to break through.
Lastly, if Solana maintains its position above the EMA and the RSI continues to climb towards but not exceed 70, it could experience further price appreciation. Conversely, a drop below the EMA accompanied by an RSI dip below 50 could indicate a bearish turn, signaling increased selling pressure.
