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Solana Prices made a strong recovery on Thursday as investors welcomed new bridges to the ecosystem. SOL surged to a high of $18.21, well above the month low of $13.56. It was one of the best performing cryptocurrencies on Thursday.
Solana is a leading blockchain platform that was once the largest player in industries such as decentralized finance and non-fungible tokens. At its peak, the company had billions of Total His Value Locks (TVL) in his DeFi ecosystem. All of this came crashing down with the collapse of FTX and Alameda Research. He is one of the two biggest contributors to that ecosystem.
The main reason for Solana’s price spike is the launch of the deBridge feature that allows Solana to communicate with Ethereum. This is the first time the two ecosystems have been able to communicate with each other.
You can also communicate with other users ethereum virtual machine (EVM) Like Arbitrum or Optimism. Without this bridge, alternative communication processes use wrapped tokens and other derived tokens. The deBridge founder said in a note:
Users and projects that need to move liquidity to Solana have always faced limitations due to the lack of liquidity in wormhole pools and high slippage when exchanging wrapped assets. often had to deal with illiquid wormhole assets.
Solana’s price also rose as there were signs that a new management team would restart FTX.as we wrote Before, management is in talks with trading partners about reopening the exchange. It’s unclear what this restart will mean for Solana and other FTX-invested companies such as Near Protocol and Serum.
The daily chart shows that SOL price has been under pressure for the past few months. This trend has pushed the price down to the January low of $13.35 this month. It has made a modest recovery and is now trying to break above the 50-day moving average. It also broke above resistance at $16.05.
The red flag I have with Solana is that this jump is not accompanied by a relative volume increase. Therefore, I do not expect it to last long and drop to the $16 support. The only caveat to the bearish view is whether Bitcoin recovers above the year-to-date high of $31,400.
Solana Prices made a strong recovery on Thursday as investors welcomed new bridges to the ecosystem. SOL surged to a high of $18.21, well above the month low of $13.56. It was one of the best performing cryptocurrencies on Thursday.
Solana is a leading blockchain platform that was once the largest player in industries such as decentralized finance and non-fungible tokens. At its peak, the company had billions of Total His Value Locks (TVL) in his DeFi ecosystem. All of this came crashing down with the collapse of FTX and Alameda Research. He is one of the two biggest contributors to that ecosystem.
The main reason for Solana’s price spike is the launch of the deBridge feature that allows Solana to communicate with Ethereum. This is the first time the two ecosystems have been able to communicate with each other.
You can also communicate with other users ethereum virtual machine (EVM) Like Arbitrum or Optimism. Without this bridge, alternative communication processes use wrapped tokens and other derived tokens. The deBridge founder said in a note:
Users and projects that need to move liquidity to Solana have always faced limitations due to the lack of liquidity in wormhole pools and high slippage when exchanging wrapped assets. often had to deal with illiquid wormhole assets.
Solana’s price also rose as there were signs that a new management team would restart FTX.as we wrote Before, management is in talks with trading partners about reopening the exchange. It’s unclear what this restart will mean for Solana and other FTX-invested companies such as Near Protocol and Serum.
The daily chart shows that SOL price has been under pressure for the past few months. This trend has pushed the price down to the January low of $13.35 this month. It has made a modest recovery and is now trying to break above the 50-day moving average. It also broke above resistance at $16.05.
The red flag I have with Solana is that this jump is not accompanied by a relative volume increase. Therefore, I do not expect it to last long and drop to the $16 support. The only caveat to the bearish view is whether Bitcoin recovers above the year-to-date high of $31,400.
