SOL Price Analysis: Solana Soars After Phantom’s Successful Fundraising Round
Aiswarya Gopan • 2 min read
Solana (SOL) has bounced back and reclaimed the key $100 mark earlier today as investors cheer the recently closed funding round for its native wallet, Phantom, even as the market sentiment appears to have bounced higher. At the time of writing, SOL/USD is trading at around $105.86.
The team behind Phantom wallet recently announced raising $109 million in their latest Series B funding round, led by Paradigm. The latest fundraising round has pegged its valuation at a whopping $1.2 billion and comes six months after it had raised $9 million in its Series A round from Andreessen Horowitz.
Phantom made this announcement via a blog post, adding that it had rolled out an iOS version of the Solana wallet as well while the Android version is slated to release within H1 2022. With the latest infusion of funds, Solana’s native wallet has plans to support the expansion of Web 3 on the blockchain and even add multi-chain capabilities in the near future.
Can Phantom Overturn Solana’s Network Outage Worries Among Investors?
Phanton’s phenomenal success has bolstered investor confidence in Solana, which has remained weak on account of the network suffering outages and congestion in recent sessions. The network, which could be a potential Ethereum killer and enjoys high TPS has been hit with what could be a DDoS attack for the fourth time in less than six months, scaring investors as well as users away.
Analysis of its network usage reveals that most of the leading dApps on Solana have seen a drop in users over the past month. However, the booming NFT market has helped offset some of these losses as the leading NFT marketplaces have added more users, supporting on-chain activity on the network despite the ongoing rout in the crypto and DeFi sectors lately.
SOL/USD Technical Analysis
Taking a look at the H4 chart of SOL/USD, smaller and medium timeframe moving averages as well as the MACD are flashing buy signals. Although, the 100 EMA, 200 EMA and other leading technical indicators momentum and Stochastics RSI reveal some bearish pressure in the market too.
Solana’s price has shot past the pivot point at $92.82 and buyers have overcome the first resistance at $104.97. Let’s see if bullish momentum can take out the second resistance at $116.64 as well.