- Solana rises above $140, contrasting with market volatility, suggests accumulation phase by traders, analyzed by Santiment.
- Critical resistance for Solana at $140; maintaining this could push prices toward $160 in upcoming weeks.
Bitcoin momentarily reached $58,400 and Ethereum approached $2,450, intensifying the focus on leveraged and margin trading. This surge resulted in Bitcoin’s open interest climbing to $12.2 billion and Ethereum’s to $5.36 billion, reflecting robust investor engagement during this period.
Concurrently, Solana exhibited a contrasting trend. Despite the market’s general volatility, Solana’s price incrementally ascended past the $140 mark. This behavior, according to financial analytics firm Santiment, might be indicative of a gradual accumulation of the asset, possibly setting the stage for future growth.
🤑 Crypto's big Friday led to Bitcoin and Ethereum seeing enormous new trader leveraged and margin trades opening up on exchanges. However, Solana's own return above $140 is seeing very little. Consider this a bullish sign for SOL, as euphoric traders are looking elsewhere. pic.twitter.com/P07VBvAdOp
— Santiment (@santimentfeed) September 14, 2024
Presently, Solana is trading at approximately $139, having increased by 2.75% over the last day. The trading volume for Solana also rose by 2.5% during the same period.
Solana’s price stability, in the face of broader market fluctuations, suggests a possible preparation for a more substantial rally. ETHNews Analysts point to the $140 resistance level as pivotal for Solana.
Should it consistently close above this mark, it might climb towards $160 in the subsequent weeks. Nonetheless, maintaining this momentum is critical; failing to do so could lead Solana to retract towards the support level of $130.
Solana’s market activity shows less susceptibility to the speculative swings common in Bitcoin and Ethereum trading patterns. This is supported by a 4.5% increase in future open interest for Solana, signifying a steady interest in the asset.
The trading metrics suggest that Solana is likely to experience further interest if it maintains its current trajectory.
While Bitcoin retracts from its peak and Ethereum remains near its high, Solana’s maintenance above $140 could be indicative of an upcoming breakout.
Unstaking of Solana by FTX Raises Market Observations
FTX recently reduced its holdings in Solana (SOL) by over $1 billion. This substantial reduction in staked assets has prompted analyses concerning its influence on market.
Solana is presently priced at around $137, maintaining stability despite the increased availability of its tokens. Optimism regarding a potential Federal Reserve rate cut has helped sustain bullish sentiment in the broader market.
In detail, over the last three months, FTX has unstaked approximately 530,000 SOL, totaling about $71 million. This averages to a monthly unstaking of roughly $3.5 million.
Despite this activity, FTX retains a substantial stake in Solana, with around 7.06 million SOL still under its control, valued at approximately $945.7 million.
ETHNews Market analysts are closely monitoring Solana’s performance following these developments. According to Isai Alexei, an analyst from ETHNews, Solana has recently shown a modest upward trend.
Predictions suggest that Solana’s price may either continue to ascend or stabilize. Nonetheless, Solana is approaching a critical resistance area between $138 and $143, which could impede further price increases.
Should Solana surpass the $143 threshold and maintain this level, it would likely signal the start of a bullish phase, potentially pushing the price towards the $159 to $163 range in the short term.
Alternatively, if Solana fails to exceed the $143 mark, it may experience a decline. However, there exists considerable support for the cryptocurrency between $120 and $128. This support range should mitigate any significant price drops below these levels.
As market participants assess the impact of FTX’s recent actions alongside macroeconomic factors like Federal Reserve policies, Solana remains a focal point in discussions about the future trajectories of cryptocurrency valuations.
