Solana may end the day with its first green for the first time in six days. It has seen notable price hikes and reclaimed critical support.
The altcoin opened trading at $168 but saw a notable price increase after its slight decline. SOL broke above $170 and edged closer to $180 as it peaked at $176. Currently trading at $173, it grapples with significant selling pressure following its peak.
The one-day chart shows that the coin saw notable buyback on Wednesday when it slipped to a low of $163. The fifth-largest cryptocurrency recovered and peaked at $174. However, it closed at its opening price.
The previous day’s price trend brought relief to the bulls. It follows four days of massive declines. One of the biggest dips happened on Monday when it retraced from $188 and lost the $180 support. It rebounded but failed to reclaim the mark.
SOL slipped lower the next day, losing the $170 support. It continued downwards until it rebounded at $160.
FTX Unlock Caused Panic Selling
One significant event that caused massive panic among investors was the news of the FTX unlock. The now-defunct exchange is raising money to fund clients’ payouts. It sold a large portion of its Solana bag at an auction.
It plans to unlock the coin on March 1. The sheer number of $2 billion caused a negative reaction from traders, worsening the downtrend.
The FTX news came while the LIBRA saga raged on. Traders and developers have since reduced interaction with the Solana ecosystem as several entities within it have faced accusations. Some investors accused Jupiter of prior knowledge about the rugpull and connivance. Attempts to clear the DEX of all accusations failed to trigger the needed reaction.
Data from DefiLlama sheds more light on the reason for the ongoing price uptick. The total locked value increased in the last three days. The TVL was at 46.4 million SOL on Feb.18 and surged to 50 million SOL on Feb. 20. Interactions with the ecosystem increased as revenue grew from 5.5k SOL to 8.4k SOL.
It is worth noting that Solana is seeing a trickle of fresh liquidity pouring into the crypto market.
Solana May Retest $200
The altcoin is up 4% with the prospect of surging higher. The one-day chart shows the asset was oversold on Tuesday. It trended close to 30 for two days before surging. Its latest increase indicates a trend reversal. Significant increases followed previous similar events. Other metrics hints that this time may not be different.
Solana is trading within the bollinger band. It dipped below the lower band on Tuesday but rebounded the next day—a breakout below the bollinger band results in notable buybacks that will significantly affect prices.
The average directional index is slowing its uptrend in reaction to the latest price increases. MACD is not exempt from the positive indicators. The 12-day EMA is trending on a straight line following days of downtrends. The metric may start a bullish convergence if the bulls sustain the buying pressure.
SOL traded shy of the $180 resistance. Previous price movement hints at signifcant demand concentration at the mark as it served as a tough support a few days ago. The asset must decisively flip the barrier, increasing it chances at a return to $200.
It is worth noting that the indicators readings do not mean that the altcoin is clear for further increase. It will see notable declines as FTX unlocks closes in.
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