The recent price surge of Solana (SOL) encountered a significant roadblock at the $25 mark, causing a reversal after a retest in early October. However, despite this setback, market sentiment has remained relatively positive, with demand showing resilience at present. Traders and investors are now uncertain about the price direction of SOL on higher time scales. Currently, SOL has been on a modest 10% upward trajectory, rising from $21.5 to $24.70 over the past few weeks. This has led to discussions about potential bullish or bearish trends or even a breakout. Analysts have pointed to encouraging signs within SOL’s price chart, particularly the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF), both of which have shown positive trends. These indicators indicate a commendable recovery in buying pressure and an increase in capital inflows over the past few days.
In a significant development, Lido Finance, a prominent liquid-staking provider, has announced that it will phase out services on the Solana network in the coming months. As the third-largest protocol on the Solana blockchain and with a presence on multiple chains, including Ethereum, this move has sent shockwaves through the cryptocurrency community. The announcement has had a notable impact on Solana’s Total Value Locked (TVL), which witnessed a sharp decline of $100 million within a single day after the news. With SOL grappling with mixed signals and developments, the immediate outlook for the cryptocurrency remains uncertain. Traders and investors are closely monitoring the upcoming price movements, awaiting further market cues and developments that could potentially sway the balance towards bullish recovery or a prolonged bearish phase. While indicators suggest a potential breakout, cautionary notes regarding resistance levels and market sentiment continue to linger, creating an air of anticipation and apprehension in the cryptocurrency community.
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