$40M Injected Into Solana | Can This End the Consolidation In SOL?
Recently, Anatoly Yakovenko (Solana’s Founder and President), said the Solana ecosystem “has grown multitudes in the past few months with the volume of projects and active developers skyrocketing quarter over quarter.” Let us dive deep into the happenings in the Proof-of-Stake protocol Solana (SOL) to understand what made the founder of Solana make this statement.
Solana, the so-claimed fastest-growing ecosystem in crypto, has recently announced a strategic partnership with two exchanges – OKEx and MXC. As per the announcement, both the exchanges together have pumped $40 million into the Solana foundation for Solana to level up their upcoming blockchain projects and support the ecosystem firms building on it.
With the capital deployed, Solana extensively plans on growing the existing projects on their ecosystem and make resources available for developers to build new decentralized applications and protocols for the evolving market.
The projects being built on Solana will now get access to the strategic resources through investment made by OKEx – Block Dream Fund. The fund is crucial in the community for its activation and adoption. A significant amount of the fund is utilized for publicity, endorsements, and international marketing support.
Dora, the founding entity of Block Dream Fund, is optimistic about working together to raise the market size and the count of users in the blockchain industry.
MXC, a crypto exchange established in 2018, with a license from 5 countries and a daily trading volume of around $4 billion, has a different set of plans with respect to their investment in Solana, as far as its customer segment is concerned.
MXC comes with an objective to enable resources and provide direction to the Solana based projects that are targeting to reach the institutional and retail markets in Asia.
The exchange “aims to foster closer collaboration with the most promising blockchain ecosystems, and this investment sets forward our belief and commitment to shepherding the success of the dApps and platforms built on Solana“, said Katherine Deng, the Vice President of MXC.
The Solana Ecosystem Update
The year 2020 has been a breakthrough for Solana. Since the launch of Solana’s mainnet beta last year, it has worked on popular projects including Serum (SRM), USD Coin (USDC), Tether (USDT), Chainlink (LINK), etc. to build and deploy on its blockchain. Solana also expanded widely in the DeFi & NFTs space and web three companies where over 50 projects have been developed and launched successfully in the market last month.
Furthermore, a DeFi based Hackathon organized by Solana and Serum had more than 100 project submissions from approximately 3,000 developers. On the other hand, Raydium, an automated market maker and liquidity provider built over the Solana blockchain, surpassed $160 million in total locked value – an increase of over 3,000% within two months.
Solana (SOL) Price Statistics
SOL (Buy SOL) is the native token of the Solana Foundation. It is currently trading around $13 – $14, about 25% below the all-time high ($18.15) that touched on February 24, 2021. Since the beginning of March to date, the price has been consolidating – with the ball in the buyer’s court.
Are the Bulls Awake Yet?
The first quarter of 2021 has been impressive so far for SOL – gaining +1400% under 90 days. As it can be ascertained from the following price chart, SOL had a smooth bull run with no interference from the sellers. However, sellers gained traction as we entered into the last sector of Q1.
Looking at the technical levels, the price is maintaining grounds at the Daily timeframe Support after the strong push down from the sellers from the ATH. The reaction coming in from the bulls fails to look powerful, at least visually.
Comparing the buyer’s most recent push with the previous one, there were bears hindering the bulls on the latest. The Seller dropped the market quite hard post the price hitting the ATH. The buyers instantly reacted to the Support but failed to continue the uptrend (higher highs). This clearly indicates that the buyers are losing out of steam, as the sellers are trying to keep the pressure in the market.
With the buyers failing to breach above $15.3 and sellers to hold below $13.1, the state of the market has transited into a range/consolidation.
Going a little deeper into the comprehension of the consolidation, the buyer did attempt twice to break and hold above the top of the range but were unsuccessful. A similar attempt from the sellers, too, was not appealing.
Looking at the range from a broader perspective, the trend line clearly depicts that the buyers are leaving higher lows every step of the way. However, on the fifth touch to the trend line, the sellers breached through the line makes it sceptical about being biased on the bull’s side.
As far as the current price action is concerned, the buyers came in strong – holding above Support as well as the bottom of the range. If the buyers break smoothly above the trend line and hold evidently, there is a high possibility for the price to shoot up to the ATH. Otherwise, the sellers could breach below the Support for the buyers to get a discounted price before it continues on its uptrend.
Nonetheless, relying on the fundamentals and the long-term technicals, the current price levels can be considered undervalued. SOL is ranked 27th on CoinMarketCap in market capitalization and is hence available on several major exchanges to purchase.
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