Solana (SOL) Getting Ready to Test Pivot Point: Good Time to Buy?
Early on Friday, Solana (SOL) seems to be experiencing some choppy trading after having posted one of the biggest gains following the Fed’s last FOMC for 2021 earlier this week. At the time of writing, SOL/USD is trading around $177.98.
The previous session saw Solana’s market cap soar by as much as $6 billion, an indicator of strong interest in the coin among investors, With an ever expanding ecosystem of dApps and far higher throughput and efficiency, several crypto experts believe that it is one of the most capable blockchain networks that can overtake Ethereum in the future.
In what could be considered quite a boost for Solana in mainstream adoption, Democrat candidate running California’s 42nd Congressional District, Shrina Kurani, is set to launch a collection of 2,022 NFTs on the blockchain as part of her election campaign. The digital collectibles will include “vision and concept statements” as well as potential policy agenda surrounding Web3. It looks like a win for her could see greater acceptance of the crypto industry among the US House of Representatives.
Another exciting development that can take the value of SOL higher in the near term, as long as the sentiment remains supportive, is the launch of a new Web3 focused investment fund by Solana Ventures in partnership with Forte and Griffin Gaming. The $150 million fund could incentivize the development of more blockchain based gaming dApps on Solana’s ecosystem.
The potential Ethereum killer could soon see an uptick in institutional inflows following the launch of a crypto fund for Solana by Galaxy Digital and Bloomberg. This comes two weeks after leading digital asset management firm Grayscale introduced a product offering institutional clients exposure to Solana as an investment opportunity.
Meanwhile, the blockchain could be facing some controversy after a report on Bloomberg revealed that former US First Lady Melania Trump was launching an NFT venture on Solana to release digital collectibles on her official website. However, Solana Labs and MoonPay have since distanced themselves from Trump’s announcement of this venture, maintaining that it was not part of any Solana-led initiative.
SOL/USD Technical Analysis
On the H4 price chart of SOL/USD, most of the small moving averages and and the MACD are exhibiting a bullish bias. However, the 100 EMA, 200 EMA and the momentum indicator are pointing to some sellers in the market too.
It looks like buyers are getting ready to give the pivot point at $179.53 a test soon. If they succeed, we can see SOL rise higher until facing resistance at $197.71, a break past which opens the door to reclaim the key $200 level.
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