Solana is one of the few coins that managed to achieve some gains earlier today even as most of the top cryptocurrencies continued to shed some of the gains they made in the last few days.
Solana’s native token SOL is currently trading at $75.05 after a 3.11% gain in the last 24 hours and 9% in the last 7 days. However, it peaked at $79.45 earlier today before losing some of its gains as the volatility paved the way to some selling in the market. It is also notably lower than its all-time high of $82 which it achieved on Saturday.
Source: Binance
Solana experienced a massive surge in buying volume last week, aiding the strong bull run that enabled it to surpass the previous all-time high and subsequently set the new ATH. The price has cooled off slightly but it might have room for more growth especially now that it is no longer overbought according to the RSI.
The cryptocurrency experienced a substantial inflow of capital in the last few days especially from around August 15 according to CoinShares. This is around the same time that Solana’s trading volume experienced a drastic increase that is evident in its price action. Before that, it had achieved some gains but there was notably lower volume before that. Such a significant increase in volume especially without noteworthy news regarding network developments or adoption milestones is only possible when institutional buyers are involved.
Phemex recently announced that it has been listed on the Solana blockchain, thus contributing as yet another major catalyst for the recent price pump. Phemex is a Singapore-based cryptocurrency exchange that targets professional crypto traders and its goal is to provide traders across the world with reliable and safe accessibility to blockchain-based infrastructure. Its founders saw the need to create a professional-grade trading platform that will appeal to pro traders.
Few crypto trading platforms boast of the capacity that Phemex offers and as a result, it is one of the fastest-growing DeFi trading platforms. This makes it a strong addition to Solana’s network, and one that will make significant growth contributions to the network. Such a major listing is often considered a catalyst and it likely contributed to a positive investor outlook on the price of SOL.
It helps that the market has been bullish for the last few weeks, thus making it easier for the bulls to push forward. Today’s trading session was characterized by some bearishness due to selloffs, perhaps triggered by news about a hack on Coinbase. This may have triggered some FUD, causing weak hands to exit their positions. Fortunately, SOL’s strong bullishness allowed it to weather the selloffs and add some gains. However, it too will likely experience some pullbacks within the next few days especially with uncertainty slowly creeping back into the market. However, Solana might have some more headroom if the market continues on its bullish trajectory for a while longer.
Sydney has 20+ years commercial experience and has spent the last 10 years working in the online marketing arena and was the CMO for a large FX brokerage.
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