Solana (SOL) Trades Choppy: What’s Happening?
Aiswarya Gopan • 2 min read
Solana is exhibiting signs of choppy trading as investors maintain their cautious mood toward cryptocurrencies after leading coins Bitcoin, Ethereum and even Cardano experience sharp slides; although, with many promising fundamentals, it could be a temporary price correction for the SOL token. At the time of writing, SOL/USDT is trading at around $166.90.
Latest Fundamental Developments Offer Support
Leading cryptocurrency exchange Huobi’s staking mining pool – Huobi Pool, announced the launch of SOL staking during the previous session, giving holders of this crypto an easy and reliable way to earn rewards. For a deposit of as low as 0.1 SOL, users of the platform can earn up to 5% annualized returns, a move which will drive up the participation and engagement among SOL token holders.
Meanwhile, venture platform SolRazr has showcased its decentralized developer ecosystem – a first of its kind exclusively for Solana’s blockchain. The protocol features Launchpad, Accelerator and Developer tools, and will help increase the development of DeFi projects on the network, offering projects a platform for fundraising and development.
The most recent weekly report on Digital Asset Fund Flows from CoinShares also reveals a rising interest among institutional investors towards Solana, which received a total of $49.4 million in funding between 6 September and 10 September. On a weekly basis, this works out to a 275% increase in institutional inflows into the potential Ethereum killer, which accounted for a whopping 86.6% of total inflows into crypto investments over the past week.
Backed by strong fundamentals, prominent crypto analyst and trader who operates under the pseudonym Smart Contracter has forecast a strong rally that can see Solan hit an ATH of $300 in the coming sessions. He expects the ultra-fast blockchain to exhibit similar movement as was seen in Binance Coin earlier this year.
Key Levels to Watch
On the 4-hour chart of SOL/USDT, the larger timeframe moving averages (yellow and green) and the momentum indicator suggest a bullish bias. Although, the smaller MAs and the MACD are showing interest among sellers as well.
Solana’s price remains just under the pivot point at $172.77 but can easily overcome this level with some more buying pressure. On the other hand, increased selling pressure can take SOL lower, in which case we need to keep a close eye on the immediate support at $129.53.