- Solana’s price is now at $294.54, a target of 96%.
- SOL rally is slowed by the expected pressure on supply in FTX, as well as wider market uncertainty.
- The bullish hypothesis would be invalidated if the weekly candlestick closed below $130.45.
The recent price performance of Solana (SOL), the Layer-1 chain, and token has put them on a pedestal. The favorable transaction fee, combined with this performance, helped Solana to gain ground in the ongoing dispute against Ethereum. This sentiment was further reinforced by the wave of meme coins that chose Solana as their launchpad. The themes that were used to boost the price of Solana helped it recover.
Please Read This: SOL increases by 5%, as the transactional activity is a long-standing feature of Solana Network’s performance
FTX will auction the remaining SOL tokens
The price of Solana has been consolidating in a rounding-bottom pattern. This not only signals the end of a downward trend, but it also signifies the beginning of an upward trend. This uptrend could be delayed due to the expectation of increased supply as defunct platform FTX will auction off its remaining SOL tokens.
LATEST: FTX WILL BE AUCTIONING OFF ITS REMAINING $SOL TRADING TOKENS
— Kyle Chasse (@kyle_chasse) 23 April 2024 The auction comes on the heels of FTX’s $1.9 billion SOL liquidation, and the remaining tokens will be sold at a set price. The auction’s other details are not disclosed, and FTX did not respond to FXStreet’s request for comments.
Some, like Figure CEO Mike Cagney, have confirmed their participation. He said he expected positive results, similar to what happened with the sales of Galaxy Digital Capital and Pantera Capital.
FTX was able, during the last sale of two-thirds of SOL tokens at $60 each token, to generate almost $2.6 Billion. It is a positive move for FTX plaintiffs and creditor, as it allows them to secure a price more in line with current market values.
Solana Price Rally Delayed
Solana’s breakout remains stalled after completing the pattern of a rounding bottom. Rounding bottom patterns are bullish reversal patterns that occur after an extended downtrend. Price action takes on a U-shape, which indicates a shift in sentiment or long-term movement from bullish to bearish. The decline of the price is followed by gradual recovery and a breakout upwards.
If $130.45 holds as support, Solana could move northward into the supply area that extends from $200.00 up to $259.90. If the price closes above the zone, it would be a confirmation of the main trend.
If the price of Solana is highly bullish, it could turn the zone for supply into support, or a bullish break, as confirmed by the reclaiming of the highs at $259,90 before setting a new high.
Relative Strength Index is still in a bullish zone as long as it remains above 50. The 21-day and 50 day Smooth Moving Averages indicators (SMMAs) are in an uptrend as well, indicating that this is also the general trend direction.
Chart of SOL/USDT for 1 week
If the RSI does not produce a new high, this would indicate a change in momentum. Investors who are looking to sell SOL must wait until the candlestick closes below $130.45, or worse yet a weekly close under the 50-day SMA of $98.36. A histogram with a massive drop in volume also undermines any potential for an upside.
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