An overnight surge in cryptocurrency assets this Wednesday resulted in Solana (SOL) overtaking its top rivals, including Bitcoin (BTC) and Ether (ETH).
The SOL / USD exchange rate rose 55.10% to $ 31.58 on Wednesday after bottoming at $ 20.14 in the previous session. Its upward movement came in the wake of a general retracement of the crypto market, which in turn followed a brutal crash in response to a complete crypto ban in China.
Solana was among the losers earlier this week. SOL / USD plunged more than 42% after opening at $ 35.22 on Monday. Similarly, Bitcoin lost 19.07% over the same period, while Ether, the second largest cryptocurrency and blockchain rival to Solana, was down 24.75%.
But all of the top crypto tokens ticked back after 48 hours of dizziness. Bitcoin rebounded 19.44% from its session low of $ 28,800 to $ 34,400. Meanwhile, Ether rebounded up to 20.29% to $ 2,045 after testing $ 1,700 as support, albeit much less than Solana.
Solana compared to the performance of other top cryptocurrencies on an adjusted 24 hour timeframe. Source: Messari
And so it appears that in the late Tuesday and early Wednesday sessions, Solana had enough catalysts to aid his wilder recovery move. The three are listed as follows.
An institutional handshake
Solana, which raised higher bids during the recovery session late Tuesday, coincided with the announcement that Pyth, a decentralized network for distributing financial market data, has added LMAX Digital, an institutional exchange operator, as its data provider.
We are excited to announce @LMAX, the leading independent operator of institutional execution venues for foreign exchange and cryptocurrency trading, as the first institutional exchange to join @PythNetwork as a data provider!
Read more at: https://t.co/7s8kYc6emE pic.twitter.com/zfDGuXBDNK
– Pyth (@PythNetwork) June 22, 2021
In detail, Pyth Network works on the public base layer of Solana, a proof-of-stake blockchain protocol that is optimized for scalability. Solana suggests helping developers create decentralized applications without having to bypass performance bottlenecks.
As for SOL, the token serves as a native currency within the Solana ecosystem. Users stake their SOL stocks directly in the network or delegate them to an active validator. In return, the stakers are promised an inflation premium. The feature will go live with the full mainnet version of Solana.
Users can use SOL to pay transaction and smart contracts fees.
After partnering with LMAX, the Solana-powered Pyth would receive forex and cryptocurrency trading data on its blockchain. The work of the oracle network, in turn, will feed the institutional data into decentralized financial projects.
Strategic investments (inbound-outbound)
To date, Solana has raised nearly $ 26 million through the sale of its SOL tokens.
But the blockchain protocol itself led a round of funding for Parsiq, a blockchain data monitoring platform, which raised $ 3 million late last week. According to Anatoly Yakovenko, founder of Solana, Parsiq on board would be “less of a headache” for their projects if they built their stack.
Rumors that Solana would raise an additional $ 450 million to develop an “Ethereum killer” may have kept SOL’s upside intact despite the June 22nd crash. However, the Solana team did not confirm the report. But they didn’t deny it either.
Solana’s attempt at recovery failed because of the news about the crypto ban in China. Source: TradingView
At the time of Parsiq’s announcement on June 16, SOL / USD was trading unchanged. But the news about the crypto ban in China shook his stable mood. The couple’s recent major declines appeared concerned out of Fear, Uncertainty, and Doubt (FUD). But due to mergers alone, the Solana ecosystem has grown into a blockchain powerhouse.
For example, in May, Solana committed $ 20 million to support projects across its network with additional support from Math Global. The team also raised $ 60 million to support blockchain-enabled projects in Brazil, Russia, India, and Ukraine.
Related: Bitcoin Price “Very Close To The Bottom” Slumped $ 30,000, Says A Bullish Institutional Report
Solana has also partnered with ROK Capital to launch a $ 20 million fund to expand in South Korea.
Triple support confluence
SOL’s most recent move downhill also tested a triple support confluence that offers day traders psychological entry levels in addition to developing Solana as a blockchain project.
The circled section consists of three levels of psychological support that keep SOL from pursuing deeper levels. Source: TradingView
The yellow bar on the chart above provided the first level of price support as it is able to limit downward attempts in recent history. Second, SOL received additional bullish bottom from the red horizontal line at $ 24.56 ($ 24.56), also with SOL’s upward trend intact and the 200-day simple moving average (200-day SMA ; the saffron wave).
The SOL / USD Relative Strength Index (RSI) was also slightly above its oversold threshold of 30. Traders traditionally perceive a lower RSI as the cue for entering the market.
Yes, number up.
Given past performance after price action like yesterday, it is more likely that $ SOL has become a de facto dip asset buy among many traders.
– Hsaka (@HsakaTrades) June 23, 2021
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