Solana (SOL) Heads Lower, But It’s Still a Good Buy: Here’s Why
Aiswarya Gopan • 2 min read
On Thursday, Solana (SOL) is on a downslide, weighed down by the unclear market sentiment in the crypto market after Bitcoin failed to make much of a break past the $48,000 mark. At the time of writing, SOL/USDT is trading at around $67.65.
Although the failure of the crypto king to rise back up above the key $50,000 level is acting as somewhat of a dampener on investors’ mood, Solana is enjoying the support of several interesting developments, driving up its interest and adoption among users. On the technical front as well, a popular crypto trader and strategist Kaleo believes that the potential Ethereum killer is likely to see its rally extend further, and he estimates that SOL could be getting ready for a massive breakout against BTC soon.
In addition to the rising interest among institutional investors, Solana’s ecosystem is seeing increasing adoption among businesses as well. Later today, Pyth Network – an oracle that will service DeFi projects, will go live on the blockchain and has already received support from 17 market makers so far. This comes only a day after Chainlink released a testnet for Solana developers to build a wide variety of hybrid smart contract DeFi apps.
Meanwhile, a DeFi protocol on the Solana ecosystem – Apricot Finance, recently completed a successful funding round, raising $4 million in capital from multiple renowned investors. Apricot’s DeFi money market platform will provide cross-margin leveraged yield farming and automated self-deleveraging mechanism once it rolls out.
Another interesting development which could support SOL’s price in the near-term is crypto asset manager Osprey Funds filing for a Solana-based fund with the US SEC. The Osprey Solana Trust will enable accredited investors to invest in this cryptocurrency, further raising interest in this digital asset.
Key Levels to Watch
On the H4 price chart of SOL/USDT, most of the smaller timeframe moving averages and the MACD are signaling a bearish bias at the moment. Although, the larger MAs – 100 EMA, 100 SMA, 200 EMA and 200 SMA, along with the momentum indicator are still flashing ‘buy’.
Solana’s price is heading lower, close to the pivot point at $69.01. A break below this in case selling pressure builds up can see the price head lower towards the immediate support at $56.03. On the other hand, a turnaround in sentiment can propel it back up until buyers face resistance at $85.76.