Solana FireDancer validator launches documentation website, SOL price holds 23% weekly gains

Solana network has been sensational since the fourth quarter (Q4) of 2023, making headlines with a series of successful meme coin launches that outperformed their peers. The network’s allure grew when it stood side by side against Ethereum in terms of transaction speed, scalability, transaction fees, ecosystem growth, and developer-friendly environment, with Solana blockchain thrashing Ethereum.

Also Read: Solana price pumps 7% as SOL-based POPCAT hits new ATH, JITO becomes largest protocol on TVL metrics

Solana FireDancer validator launches documentation website

In another development likely to provide tailwinds for SOL, the Solana FireDancer validator has launched the documentation website. This is “a new Solana validator client, built from the ground up for performance,” an excerpt from the website reads.

Created by Jump Trading, a global trading firm actively involved in the cryptocurrency and blockchain space, the FireDancer validator was created to improve Solana. Jump Trading's activities on the Solana blockchain may include participating in decentralized finance (DeFi) protocols, liquidity provision, trading digital assets, and contributing to the development of the Solana ecosystem.

“FireDancer will replicate Solana’s functionality but with higher performance,” the documentation website indicates, adding that it will iron out the software inefficiencies while at the same time driving the performance to the hardware’s limits.

FireDancer will provide various benefits and services to Solana holders. These include:

Network Security: Secure the Solana network by participating in the consensus protocol and validating transactions. This helps protect the network from attacks and ensures its overall stability and integrity.

Staking Rewards: Solana holders can stake their tokens with FireDancer to earn rewards for helping to secure the network. Validators like FireDancer distribute rewards to stakers in the form of additional SOL tokens.

Governance Participation: Validators like FireDancer often participate in governance decisions on the Solana network. They may vote on proposals, upgrades, or changes to the network protocol on behalf of stakers.

Technical Support: FireDancer may provide technical support to Solana holders who stake their tokens with them. This can include assistance with setting up staking accounts, troubleshooting issues, and answering general questions about the network.

Solana price outlook

Solana price suffered a prolonged fall of over 98% between November 2021 and January 2023. This was followed by a brief horizontal consolidation before the bulls took over, with the price action culminating in a rounding bottom pattern.

A rounding bottom pattern is a bullish reversal pattern that happens after a prolonged downtrend. The price action forms a “U” shape, indicating a change in long-term price movement or sentiment from bearish to bullish, where the price decline loses momentum, followed by a gradual recovery before a breakout to the upside.

As the $130.45 support continues to hold, Solana price could bounce north into the supply zone that stretches from $197.70 to $250.21. A break and close above its midline on the weekly timeframe at $224.14 would confirm the continuation of the primary trend.

In a highly bullish case, Solana price could flip the supply zone into a support or bullish breaker, confirmed by reclamation of the all-time high at $259.90, before establishing a higher high.

The position of the Relative Strength Index (RSI) above 50 suggests an abounding bullish outlook for the Solana price, tilting the odds further in favor of the upside. The likely play is a bounce off this momentum indicator above the 50 mean level, kickstarting a new uptrend for SOL.

SOL/USDT 1-week chart

On the other hand, if the bears have their way, Solana price could lose the support at $130.45, extending the fall to the $100.00 level. A candlestick close below this level would invalidate the bullish thesis.